Home / Business and Economy / Regulator Flags Weaknesses at Market Operator ASX
Regulator Flags Weaknesses at Market Operator ASX
2 Apr
Summary
- Corporate regulator flagged governance and risk failures at ASX.
- ASX allegedly compromised infrastructure for shareholder returns.
- Regulator's report cited transformational change needed at ASX.
The Australian Securities and Investments Commission (ASIC) has released its final report detailing governance weaknesses and risk management failures at the Australian Securities Exchange (ASX). The inquiry found that the bourse operator compromised the resilience of critical market infrastructure in pursuit of high shareholder returns.
Furthermore, the report indicated that ASX's governance arrangements failed to adequately focus on critical market infrastructure. It also noted a lack of aspiration within ASX to act as a steward for such vital systems, suggesting a need for maturation in risk management and compliance practices.
ASIC Chair Joe Longo stated that the scale of transformational change required at ASX is significant to fulfill its stewardship role. This outcome comes after ASIC imposed an additional capital charge of A$150 million on ASX in December. The inquiry was initiated in June following issues with a software upgrade and trade-processing glitches.
