ASX Compliance Pty Limited is a wholly-owned subsidiary within the ASX Group.
The ASX Limited board relies on the ASX Compliance board to:
- monitor trends in financial markets, and global standards for admission requirements and compliance
- review whether ASX Compliance’s processes remain 'fit for purpose' and aligned with ASX Group strategy and brand
- make recommendations on matters that could impact on the strategy, brand or license obligations of the ASX Group, including key and emerging risks
- oversee each ASX Group licensees’ compliance, enforcement and conflict handling obligations
- approve and monitor the processes implemented by ASX Compliance to demonstrate that ASX Group Licensees have adequate arrangements for monitoring and enforcing compliance with their operating rules
- review the appointment, performance and remuneration of the Chief Compliance Officer.
New governance arrangements for ASX Compliance were put in place in 2016 to reflect the evolution of global financial markets and the ASX Limited Board’s oversight of ASX’s brand and reputation. These changes recognise that the strength of ASX’s listings franchise is built on four foundations:
- strength of the Australian economy and investment environment
- trust in the regulatory environment administered by ASX and Australia’s regulatory agencies
- quality of ASX brand
- integrity of ASX listing rules framework.
ASX Compliance has delegated authority to make certain compliance and enforcement decisions on behalf of the ASX Group licensees. It also provides other services to ASX Group entities as necessary so that:
- in the case of a market licensee, it has adequate arrangements for monitoring and enforcing compliance with its operating rules (as required by s792A of the Corporations Act); and
- in the case of a clearing and settlement facility licensee, it has adequate arrangements for enforcing compliance with its operating rules (as required by s821A of the Corporations Act).
The ASX Compliance board consists of independent non-executive directors, with three directors from ASX Limited and three non-ASX Limited directors.
Rick Holliday-Smith, Chairman of ASX Limited, is the chairman of the ASX Compliance Board.
Alan Cameron AO, a former chairman of ASIC, is the deputy chairman of the ASX Compliance Board.
Kevin Lewis, Group Executive and Chief Compliance Officer, heads the ASX Compliance function and, in that capacity, reports directly to the ASX Compliance board.
ASX Compliance is divided into three functional units: