CANBERA (dpa-AFX) - ASX Limited (ASX.AX) announced a strategic package of actions agreed with the Australian Securities and Investments Commission (ASIC) in response to findings from the interim report of the ASIC Inquiry Panel. The interim report contains substantive conclusions and recommendations, with a final report expected by 31 March 2026.
As part of the commitments, ASX will undertake a strategic reset of its Accelerate Program by 1 July 2026. The program, originally focused on remediation, will expand its scope to address operational risk management, resilience, and cultural transformation, in line with the Panel's recommendations.
Governance reforms will also be implemented. ASX has committed that the boards of ASX Clear, ASX Settlement, ASX Clear (Futures), and Austraclear will be fully comprised of independent, non-ASX Limited directors. This transition will occur through an orderly renewal process, supported by dedicated resources and clearly defined shared services from the ASX group.
The Panel has recommended a revised regulatory approach, centred on a joint supervisory model between ASIC and the Reserve Bank of Australia (RBA). ASX has welcomed this recommendation, noting that the new model will be key to agreeing the revised Accelerate Program.
ASIC has imposed an additional A$150 million capital charge above net tangible asset value, reflecting the elevated risk profile identified in the report. ASX will accumulate this capital by 30 June 2027, and it must be held until milestones in the reset Accelerate Program are completed and ASIC approves its staged reduction or release.
To meet this requirement, ASX has announced a dividend cut, lowering its payout ratio policy range from the previous 80%-90% of underlying net profit after tax to a new range of 75%-85%. The payout ratio is expected to remain at the bottom end of this range for at least the next three dividends. In addition, the Board plans to operate a discounted dividend reinvestment plan over the same period. These measures are intended to support the accumulation of the additional capital required by ASIC.
The increased capital requirement will impact ASX's medium-term return on equity, which is now targeted between 12.5% and 14.0%, compared to the previous range of 13.0% to 14.5%. Guidance for fiscal year 2026 expense growth and capital expenditure remains unchanged, with total expense growth expected between 14% and 19% compared to fiscal year 2025. This includes A$25 million to A$35 million in operating expenses related to the ASIC Inquiry. Excluding these costs, core business expenses are expected to be toward the upper end of the 8% to 11% range.
Capital expenditure is forecast between A$170 million and A$180 million in fiscal year 2026, and between A$160 million and A$180 million in fiscal year 2027, before beginning to reduce as investments deliver a modern, sustainable, and resilient technology environment.
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