The Australian Securities and Investments Commission (ASIC) has taken further action to ensure that ASX adequately responds to the findings and recommendations of the ASX CHESS Replacement Application Delivery Review by Accenture and that all necessary steps are undertaken by ASX to uplift identified gaps and deficiencies in relation to the ASX Group’s portfolio, program and project management frameworks.

ASIC has issued notices to ASX Limited, ASX Clear Pty Ltd and ASX Settlement Pty Ltd under sections 794B and 823B of the Corporations Act 2001. These notices require the ASX Licensees to produce two special reports covering:

• how the ASX Licensees will respond to the findings and recommendations of the External Review (the External Review Special Report); and
• the ASX Licensees’ current portfolio, program and project management frameworks and an assessment of those frameworks against internationally recognised standards (PPPM Special Report).

These special reports will be audited by Ernst & Young. The External Review Special Report is due to ASIC on 30 June 2023. The associated audit report is due to ASIC on 31 July 2023. The PPPM Special Report is due to ASIC on 29 September 2023 and the associated audit report on 31 October 2023.

Today’s action follows and supplements the section 823B notices issued to ASX Clear and ASX Settlement on 15 December 2022 to produce a special report on current CHESS and the ASIC-RBA joint letter of expectations issued to the boards of ASX Limited, ASX Clear and ASX Settlement on 17 November 2022.

ASIC expects that, taking into account any confidential commercial and security information, versions of the External Review Special Report and PPPM Special Report will be made publicly available.