ASX defends against claims by ASIC that it breached the law
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The news: ASX has said it does not accept allegations by the corporate regulator that it breached the law with misleading statements linked to its Clearing House Electronic Subregister System (CHESS) replacement program.
The context: Managing director and chief executive Helen Lofthouse said while ASX accepted that the delays with the previous CHESS replacement project caused disruption, it did not breach the law.
ASX said it has filed its defence in response to the proceedings brought by ASIC.
In August, the Australian Securities and Investments Commission (ASIC) alleged that while ASX said its CHESS program was "on-track for go-live" in April 2023 and was "progressing well", this was all misleading.
According to ASIC, at that time the project was not on schedule and ASX was unable to imply the project could meet future timetable goals.
What they said: “ASX provided regulator updates on the project, including that it was subject to feedback and change, as well as the input of our external suppliers. When we became aware that the project required a deeper assessment, we commissioned an independent review,” Lofthouse said.
“We took the difficult decision to pause and reassess the project and we have conducted several independent reviews, including those requested by our regulators, and we continue to implement recommendations from these reviews.
“... it is in the interests of the company and its shareholders that ASX defends the proceedings.”
The source: ASX announcement
