ASX Inquiry Final Report - Capital Charge $150M and Transformation Requirements

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Print Share ASIC has today published the ASX Inquiry Panel’s (the Panel) Final Report into the Australian Securities Exchange (ASX) group.

This follows the Panel’s nine-month analysis, focusing on governance, capability and risk management frameworks and practices across the group.

ASIC appreciates the significant work of the Panel and welcomes the Final Report.

The Final Report builds on the Interim Report by providing more detail supporting the Panel’s recommendations – including a number of case study examples.

ASIC obtained commitments from ASX in December 2025 (25-303MR) and will closely oversee, along with the Reserve Bank of Australia (RBA), ASX’s implementation of these commitments.

In June 2025, ASIC took the unprecedented step of commissioning an Inquiry into ASX after years of persistent issues and operational failings.

Final Report key observations

The Panel conducted more than 140 stakeholder interviews, reviewed submissions and an expert technical report of the CHESS system, undertook international benchmarking, held focus groups with ASX staff, and reviewed over 10,000 documents.

The key observations of the Final Report are consistent with the Interim report, and include that:

• Resilience of critical market infrastructure has been compromised to deliver high shareholder returns
• Governance arrangements fail to provide the necessary focus on critical market infrastructure
• ASX lacks the aspiration to be a steward of critical market infrastructure

• Capability and cultural barriers are hindering transformational change.
  In addition to the Interim Report, the Panel observed that:

• ASX’s risk management and compliance practices need to mature to become fit-for-purpose and embedded in business processes. This contributed to ASX being overly reactive and tactical in its response to incidents and identified gaps

• An area that requires more reflection is the execution of ASX’s own market supervision responsibilities to monitor, supervise and enforce compliance with Operating and Listing Rules by participants and listed entities.
  ASIC Chair Joe Longo said the ASX Inquiry’s Final Report reinforced that the strategic package of reforms ASIC announced in December was the urgent reset required.

‘This report confirms that ASIC’s decision to commission this unprecedented Inquiry was the right call.

‘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.

‘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.’

Next steps

On 27 February 2026, ASX submitted its Commitments Plan to ASIC outlining how it would deliver the strategic package of reforms agreed with ASIC.

ASIC will continue to work closely with ASX on its delivery of this Plan. This includes:

• The reset of ASX’s Accelerate, of which ASX has committed to deliver the plan by 30 June. This will define clear target states for ASX to fulfill its stewardship role
• The development of a revised technology strategy that is aligned with the refreshed business strategy
• A capital charge of $150 million in net tangible assets to be implemented by 30 June 2027
  • ASIC notes that ASX has taken steps to address the capital charge including reducing the 1H26 dividend payout ratio to 75% (from 85%) of underlying net profit after tax and operating a discounted dividend reinvestment plan
  • ASX will hold this capital charge until the agreed work in the strategic reset is completed to ASIC’s satisfaction
• A commitment to strengthening governance and independence of its Clearing and Settlement Facility (CS) Boards:
  • ASIC notes that progress has been made since December, as the CS Facility Boards are now comprised solely of independent directors following the resignation of three ASX Limited directors from the CS Facility Boards in February 2026
  • ASX is progressing with the identification and appointment of additional directors who have the right skills, as well as a new CS Managing Director
  • ASX is progressing steps to achieve greater functional separation of the CS facilities from other businesses. As part of ASX’s transformation, ASIC also notes its progress on leadership as ASX transitions to its new CEO.

ASIC and the RBA have progressed their revised regulatory approach to ASX and are in the process of uplifting their joint supervisory model for the Clearing and Settlement facilities. This includes establishing a joint working group, focused on a forward-looking, outcomes-based approach to ASX supervision.

ASIC Chair Joe Longo continued, ‘The market and the Australian public need resilient and reliable market infrastructure.

‘It is now firmly for ASX to ensure its transformation is successful and enduring. This will take time and will require sustained focus on leadership, accountability, investment and stewardship to deliver,’ Mr Longo said.

ASIC Commissioner Simone Constant said, ‘What sets this Inquiry apart is that, alongside the release of the Final Report, there is already an update on ASX’s early progress and the concrete steps taken to meet its agreed commitments.

‘ASIC determined early intervention was necessary during the Inquiry process, and we acted decisively.

‘We will continue to drive the sustained change required to restore trust and confidence in ASX, and we will hold ASX to account to ensure these commitments are delivered in full.’

Whilst this program of work is underway, it is critical ASX continue to prioritise the safe and efficient operation of its infrastructure, meeting the day-to-day needs of the market.

This includes the safe transition of the CHESS Replacement Release One, which is currently scheduled for go-live in late April 2026.

ASIC will continue to actively promote competition in trading, clearing and settlement, which has brought innovation, enhanced market efficiency and strengthened Australia’s attractiveness for listings and capital.

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Final Report

Background

ASIC took the unprecedented step in June 2025 of commissioning an expert-led Inquiry into ASX because, after years of persistent issues and operational failings - and despite extensive regulatory action, including expert reviews, enforcement, licence conditions, law reform and efforts to promote competition - a fundamentally different outcome was required.

Under the Terms of Reference of the ASX Inquiry dated July 2025, ASIC requested the Panel contribute to ASIC’s assessment under sections 794C(1) and 823C(1) of the Corporations Act 2001 (Cth) of the following licensees:

• ASX Limited and Australian Securities Exchange Limited, as holders of Australian market licences under section 795B(1).
• ASX Clear Pty Limited, ASX Settlement Pty Limited, ASX Clear (Futures) Pty Limited, and Austraclear Limited, as holders of Australian CS facility licences under section 824B(1). The Assessment was informed by the Inquiry, its terms of reference, and the Interim and Final Reports. The actions taken by ASIC and commitments made by ASX on 15 December 2025 occurred during the course of, and as a result of, the Assessment.