ASIC Takes Legal Action Against ASX Over CHESS System Delay
ASIC Takes Legal Action Against ASX Over CHESS System Delay
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The corporate regulator has taken legal measures against ASX due to alleged misleading statements regarding the progress of its failed attempt to replace the Clearing House Electronic Subregister System (CHESS).
On February 10, 2022, ASX had publicized that the CHESS replacement was “on track for go-live” by April 2023. However, subsequent developments painted a different picture, prompting sharp criticism and legal actions from the Australian Securities and Investments Commission (ASIC).
ASIC's complaints arise from reassurances given by the ASX suggesting that the project was "progressing well." Yet, by late March 2022, ASX consulted Accenture, whose findings led to the project's shelving and $250 million in write-offs.
In his statement unveiling the court action, ASIC chair Joe Longo remarked, “There was a collective failure by the ASX board and senior executives.” He underscored that ASX’s promises are vital for trust within the financial markets.
“Companies and investors rely heavily on ASX’s communications regarding their operations to make investment decisions. A breach of confidence at this level induces extensive repercussions across the market,” Longo added.
The legal actions come on the heels of a pre-existing penalty amounting to $1,050,000 paid by ASX after an ASIC investigation scrutinized its adherence to market integrity rules.
Moreover, criminal charges were recently directed at four individuals allegedly involved in a "pump and dump" operation via Telegram, spotlighting ASIC's dedication to regulatory compliance.
The CHESS system, originating in 1994, initially replaced a laborious paper-based clearing approach. The award-winning transaction clearing system proved instrumental for brokers who floated the exchange in 1998, now known as ASX Ltd. The shift from manual to digital processes was seen as a massive leap in operational efficiency at the time.
ASX had planned to replace the decade-old CHESS system beginning in 2016, targeting an April 2021 completion date. However, the project timeline was redefined to April 2023 after re-planning in March 2020.
Subsequently, Digital Assets, ASX’s advisory consultants, flagged the project with a “red RAG” status from June to November 2021, indicating severe risks to timely delivery without appropriate mitigations.
This red status, an IT project management term for serious concerns, was documented and presented to ASX’s audit committee in early February 2022. Nonetheless, ASX published its half-yearly report a week later, asserting that the project was "tracking to plan and progressing well," a statement that ASIC now disputes.
Longo emphasized, “We will argue that the project was not ‘progressing well’ as of February 10, 2022. The postponement and subsequent pause in November 2022 have significantly impacted ASX and the market participants dependent on these assurances.”
Highlighting the necessity for transparent and efficient management of such pivotal projects, Longo remarked, “Ineffective handling erodes confidence in Australia's market's ability to attract investment.”
The original article was published by Neale Prior for The West Australian
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
The Reserve Bank of Australia's latest credit figures point to a continuing theme for households: Australians are still using personal credit as budgets remain under pressure. While housing and business lending often dominate the headlines, movements in personal credit are important because they can reveal how consumers are funding vehicles, renovations, travel, debt consolidation and unexpected expenses. Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check! - read more
Australia's personal loan market is showing a clearer split between borrowers who qualify for sharper advertised rates and those facing higher pricing because of credit history, income uncertainty or limited documentation. Recent lender and comparison-market updates point to a widening difference between the lowest promotional offers and the rates many applicants may actually receive after assessment. - read more
Australia's latest monthly new-car sales reporting has reinforced a trend caravan buyers cannot afford to ignore: the tow vehicle is becoming just as important to the finance conversation as the caravan itself. Utes, large SUVs and four-wheel drives continue to attract strong buyer interest, helped by touring lifestyles, work-and-family versatility and the need for higher towing capacity. - read more
Recent Australian marine market coverage is putting trailerable boats back in the spotlight, with new model activity, dealer promotions and buyer interest all pointing towards vessels that are easier to store, launch and tow. For many households, that practicality is a major part of the appeal. A trailerable fishing boat, bowrider or compact cruiser can offer more flexibility than a marina-based vessel, particularly for owners who want to explore different waterways without committing to permanent berth costs. - read more
Australia's new-vehicle market is entering a more complicated pricing phase as the New Vehicle Efficiency Standard starts to influence how car makers allocate stock, promote lower-emission models and manage higher-emission vehicles. For buyers, the policy is not just an environmental headline. It may gradually shape the cars that are easiest to find, the incentives attached to them and the total amount that needs to be financed. - read more
Stepping into the realm of commercial truck financing can be a highway riddled with complex terms and conditions. Understanding commercial truck loans is not only about getting the keys to a new vehicle; it's a crucial investment in your business's future. As a borrower, you need to navigate through the fine print to find a loan that fits like a glove. - read more
In the journey to secure a commercial vehicle loan, preparation is key. Just as a vehicle needs to be in perfect condition to hit the road, your loan application requires meticulous attention to detail to ensure a green light from lenders. This article embarks on the essential journey of understanding the critical checkpoints before applying for a commercial vehicle loan. We navigate through the path of prerequisites that pave the way for a seamless approval process. - read more
For many Australian businesses, purchasing a commercial vehicle is a significant investment that often requires financial assistance. Understanding the intricacies of truck financing is crucial, as the right loan can affect your company's bottom line and operational efficiency. With a plethora of lenders offering myriad loan products, choosing the most advantageous deal can be daunting. - read more
Buying a used truck can be a practical way to expand or start a transport operation, but finance-related checks are essential before you commit. This guide explains PPSR searches, outstanding finance, private sale documents, lender valuation requirements, insurance and settlement steps for Australian buyers. - read more
Small businesses that require regular transportation of goods may find it essential to purchase a truck. However, this acquisition can become a significant investment that requires careful consideration before making a decision. The two options available are buying or leasing a truck. In this article, we will explore the pros and cons of each option to help you make an informed choice. - read more
Start Here
Get a free truck loan eligibility assessment and compare truck finance and leasing options
without accessing your credit file!!
Knowledgebase
Index Fund: A type of mutual fund designed to replicate the performance of a specific market index, such as the S&P 500.
No comments yet. Be the first to share your thoughts.