The Reserve Bank has ordered ASX to “redouble its efforts” to improve its corporate governance and risk management culture after it botched the upgrade of the equity market’s post-trading systems last year. The regulator flagged concerns about its internal audit function as the exchange struggles to restore trust with the market.
In a stern report card issued on Monday, the RBA downgraded its assessment of ASX’s management of clearing and settlement against its so-called financial stability standards, declaring it had only “partly observed” requirements around governance, risk management and operational risk. The central bank’s annual assessment will up the pressure on the ASX board, chaired by Damian Roche, ahead of its annual general meeting next week. Read more here.