Former ASIC chair Alan Cameron to head regulator-imposed industry advisory group for ASX’s CHESS project

In a bid to address concerns over ASX’s conflicts of interest over its troubled CHESS project, a former ASIC boss has been appointed to an industry group advising on the work.

The Australian Securities Exchange has tapped former ASIC chair Alan Cameron to address concerns about its conflicts of interest over its troubled CHESS project.

The share market operator has appointed Mr Cameron as independent chairman of the ASIC-imposed industry group that will advise on strategic matters regarding the bourse’s botched CHESS clearing and settlement project.

The move follows a roundtable hosted by Australian Securities & Investments Commission chair Jo Longo on Wednesday to steer the process to create the advisory group, which was also attended by incoming Reserve Bank governor Michele Bullock.

The roundtable and the formation of the committee “address longstanding industry concerns over the CHESS replacement project and the adequacy of ASX’s stakeholder engagement and governance, including ASX’s management of intragroup conflict of interests,” the regulator said in a statement.

ASIC warned it would use its powers to make sure the advisory group – which will include a number of clearing, settlement, custody, technology, registry services and markets industry leaders – was able to provide input into the governance of the CHESS replacement project and functioned as intended.

Both regulators – ASIC and the RBA – will set out their expectations for the group in a letter to the ASX in coming weeks, and they expect a public response from the board of ASX Clear and ASX Settlement to that letter.

“ASIC is prepared to use a range of regulatory options to ensure that ASX Clear and ASX Settlement adhere to the regulators’ expectations with respect to the Advisory Group,” the regulator said in a statement.

The regulatory interventions follow longstanding stakeholder complaints about how the ASX has handled conflicts of interests around its disastrous CHESS replacement project.

ASX chief executive Helen Lofthouse said the company was “deeply committed to continuing to lift our engagement with stakeholders” and valued a “constructive and collaborative working relationship with industry,” she said.

“The task ahead for the Advisory Group is both challenging and crucially important, and I am therefore delighted that Alan has agreed to take on the important role of chair,” she said.

“His deep industry experience and his consensus-building skills will be invaluable in helping this stakeholder group contribute effectively.”

A former chairman of ASIC from 1993 to 2000, Mr Cameron is well versed in ASX compliance matters, having also previously chaired its ASX Compliance Board and the ASX Corporate Governance Council.

“Mr Cameron and the Advisory Group will have an important role in assisting ASX to restore trust and confidence in the project,” Mr Longo said.

“There was a consensus that ASX, the Advisory Group and industry must work collaboratively to achieve the best outcome for the market, for listed companies and investors, and not favour any particular Group’s interests.”

ASIC said it had asked the group and the ASX to work “together, in the best interests of the market, including for the replacement of CHESS”.