ASX Ltd (ASX:ASX) chair David Clarke said ASIC’s final report is “tough reading” and marks a “turning point” for the market operator.
The regulator found ASX’s culture had become “defensive and insular” and that it had not spent enough time looking outward.
“Changing culture is harder than changing structures, and it takes longer, but it starts with recognising where we are and what must change,” Clarke said.
ASX also reaffirmed its capital expenditure guidance of $170 million to $180 million in FY26 and $160 million to $180 million in FY27, with most of that spend allocated to major technology projects under its modernisation plan.
Outgoing chief executive Helen Lofthouse said confidence will need to be rebuilt through performance.
“Confidence will be earned over time through the safe and efficient operation of our infrastructure, disciplined delivery of the CHESS project and clear evidence that we have addressed the barriers to change identified by the ASIC Inquiry.”
ASIC report marks turning point for ASX as operator commits to cultural, governance and technology reform
ASIC on Thursday released its final report into ASX, saying the market operator needs to “reflect” on how it carries out its market supervision responsibilities, including monitoring, supervision and enforcement of compliance.
The inquiry examined ASX’s governance, capability and risk management frameworks after years of operational failures.
While the final findings were broadly in line with ASIC’s interim report released in December, the regulator says ASX’s risk management and compliance practices still need to mature so they are fit for purpose and properly embedded in business processes.
It says the lack of maturity in those practices “contributed to ASX being overly reactive and tactical in its response to incidents and identified gaps”.
ASX in February submitted a commitments plan that includes resetting its Accelerate program by 30 June, developing a revised technology strategy aligned with its refreshed business strategy, implementing a $150 million capital charge in net tangible assets by 30 June 2027, and strengthening governance and independence across its Clearing and Settlement Facility boards.
The first release of ASX’s CHESS replacement project is scheduled to go live in late April 2026.
Outgoing ASIC chair Joe Longo said the report reinforces the scale of change required.
“The further evidence and key observations in this Final Report support the scale of transformational change required at ASX to deliver on its stewardship of critical market infrastructure,” he says.
“I thank the Inquiry Panel for its work, which provided a circuit breaker for ASX and a clear path forward to rebuilding trust and confidence in this operator of critical markets infrastructure.”