In this issue

• Introduction
• ACSA Executive Board change
• Surveying the costs of custody
• Regulatory wrap
• CHESS replacement update
• New associate member – Financial Risk Solutions
• In Focus – Daryl Crich

Introduction

We’re planning to get members together.

As we all become more comfortable with being back in the office and meeting in person, ASCA is planning for us to get together for future member forums. It’s time to catch up with our industry colleagues.

ACSA’s in-person member forums are currently being planned for August in Sydney with a further forum in Melbourne in October. We will get the details out shortly so you can save the date with details available here on our website.

In addition, as part of ACSA focus on industry career development, we will shortly be announcing a significant initiative for engaging the future talent of our industry: to assist with industry knowledge, career pathways and networking opportunities.

This month’s Industry Wrap covers changes to the ACSA Executive Board, an upcoming survey, regulator engagement and CHESS update, we welcome a new associate member, and we get In Focus with Daryl Crich.

ACSA Executive Board change

HSBC has recently changed its Executive Board Member. Harpreet Ahuja, Director, Head of Product Management & Strategy, HSBC Securities Services Australia & New Zealand recently stood down from the ACSA Executive Board. Harpreet is replaced on the ACSA Executive Board by Sinclair Scholfield, Head of Sales and Client Management, HSBC Securities Services Australia & Nerw Zealand. 

ACSA Chair, Sally Surgeon commented, “We thank Harpreet for his outstanding contribution to the ACSA Executive Board and his leadership of the ACSA Regulatory Working Group. Harpreet has helped the industry navigate through significant industry data reporting obligations through his time on the board. We also look forward to having Sinclair on the Executive Board, Sinclair has been involved with ACSA in a range of roles so its good to have him back actively involved.”

Sinclair joined HSBC in February 2022 as Head of Sales and Client Management, HSBC Securities Services Australia & New Zealand. In this role, he is responsible for business development, sales, client management, and interactions with industry bodies. Sinclair provides market intelligence and product guidance to clients, leveraging the bank’s knowledge capital and resources. He brings over 25 years’ experience to the role, including 18 ½ years at State Street Corporation where he was most recently Head of Platform Solutions for Asia Pacific. Prior to that, Sinclair headed Sales and Securities Finance in Australia and New Zealand, was Asset Liability Manager for Securities Finance EMEA and APAC based in London, headed Wealth Manager Services for EMEA based in London, and project managed an acquisition project in the USA, UK and Switzerland. Prior to joining State Street, Sinclair spent 3 years at Omgeo LLC in Boston where he headed Product Design for CTM up until its market launch, and 5 years at Accenture while based in Charlotte, North Carolina.

Sinclair re-joins the Board of ACSA as HSBC’s representative. He has been a long-term contributor to the body across a number of working groups, and was also a former ACSA Director on behalf of State Street.

Sinclair holds a Bachelor of Economics (Hons) from The University of Sydney, a Master in Applied Finance and Investment from FINSIA, and has earned the Chartered Financial Analyst designation from the CFA Institute.

Surveying the cost of custody

As part of a global team of associations and providers, ACSA will be supporting the ValueExchange’s industry-wide survey that will benchmark settlement and corporate action costs across several leading global markets, including Australia.

In an era of digitisation, resiliency and settlement discipline, our aim is to help you to understand exactly where the potential for efficiencies lie across your trade cycle – in specific markets and across specific post trade activities. This survey will also feed directly into the ACSA post-trade agenda, helping to increase cost transparency across Australian market participants and highlight areas of potential focus in our advocacy.

If you would like to have an early view of the survey, please click here.

Regulatory wrap

ATO Governance over third party data.

The ATO released its Governance over third party data - Supplementary Guide for superannuationfunds, managed funds and insurance companies on third party data tax controls.

The supplementary guide is for industry participants to develop and implement third-party data tax controls tailored to their business. The ATO expect participants to fully implement appropriate tax controls over the next 18-24 months. To do this, the ATO encourage entities to document a self-assessment of their third-party data tax controls against the guide, identifying any gaps. With this assessment, entities can then develop an implementation plan. This guide was developed following a collaborative consultation process with industry, including ACSA, through an extensive consultation. The Governance over third-party data guide is a supplementary guide to the Tax risk management and governance review guide (ATO Guide) and should be reviewed together. 

AUSTRAC IFT-E payment guidelines

ACSA provided input on AUSTRAC’s draft technical guidance on IFTI-E payment reporting obligations for financial institutions. This guidance was developed in response to financial sector requests for greater clarity about IFTI-E payment reporting obligations applicable to a range of scenarios. As part of the initial development of the guidance we have sought views from a range of financial institutions. If you would like to find out more about the ACSA submission, please contact us here.

Digital Assets Consultation

ACSA’s Digital Asset Taskforce is currently preparing a response to the Federal Government recently released consultation paper on 'Crypto asset secondary service providers: Licensing and custody requirements'. 

The consultation is seeking feedback on a set of proposals for regulating crypto asset service providers (CASSPrs) and custody of crypto asset and runs until 27 May 2022. More information on the consultation can be found here on Treasury’s website or if you wish to participate in ACSA’s response please contact us. 

CHESS replacement update

The ASX provided a CHESS replacement project update –which included changes to software release timing and implications for project milestones. A copy of the update can befound here.

ACSA looks forward to the upcoming ASX consultation with industry on the implications of the changes for go live.

New associate member – Financial Risk Solutions

ACSA would like to welcome its latest associate member – Financial Risk Solutions.

With over 20 years of delivering Investment Administration software, including unit pricing with tax functionality incorporated, Financial Risk Solutions (FRS) is a trusted technology partner to custodians, asset owners, life assurance, wealth and asset management firms worldwide. Founded and led by an expert team of actuaries, compliance, and IT specialists, FRS’s clients license the FRS software InvestPro™ to help navigate the ever-changing challenges of growth, regulatory pressures and competition in the industry. FRS is owned by Constellation Software inc. (CSI) which is Canada’s largest technology company, listed on the Toronto Stock Exchange (TSX: CSU) with a current market capitalisation of US$45 billion.

FRS was established in 1999 by industry specialists who had spent years on the other side of the desk working with different investment administration systems. Unable to find an efficient system, they began building and developing a software system that could solve complex problems for asset owners and life assurance companies. FRS launched their flagship InvestPro™ platform.

The software is now relied on by a large number of blue-chip financial services and business process outsourced (BPO) clients to reduce operational costs, increase efficiencies and mitigate risk in the manufacture and management of investment products, including superannuation.

With Australia leading the world in defined contribution Superannuation, FRS is looking forward to engaging with ACSA to ensure that our InvestPro platform can contribute to the industry by improving automation, mitigating risk and increasing standards in this market. More than 150,000 funds globally are managed on the Award Winning InvestPro™ platform today, including Generation Life funds in Australia.

In Focus –Daryl Crich

Daryl commenced at BNP Paribas Securities Services nearly 30 years ago. Daryl is the Chief of Staff for Australia and New Zealand. Daryl is responsible for the definition, co-ordination and execution of the organisation’s strategy, manages transversal organisation wide projects, works with the CEO and other Executives to ensure the Governance Framework of the organisation remains effective and oversees all aspects of the company’s financials.

Prior to that, Daryl spent 10 years with KPMG in their Audit and Advisory Services Division, participating in their Banking and Finance Group for the last three years. Daryl has a Bachelor of Commerce degree from the University of New South Wales and is a Chartered Accountant.

 How long have you been involved with ACSA and can you tell us a little about the work you currently do as Treasurer?

I have sat on the ACSA Board since 2013 and acted in the role of Treasurer since 2016.

As Treasurer I work with the CEO, Chair and the rest of the Board on the preparation of our annual Budget each year, the tracking of our actual monthly P & L against our Budget and liaise annually with our auditors.

Tell us about your career in asset servicing / financial services? What are some of the key trends in the industry at the moment?

I’ve been in financial services in different roles for the past 30 years. Having come from an Audit background my first role was a very technical accounting role, but this quickly changed into a more overall business role with a more Strategic Change focus. I have headed up our Product Team for over 10 years and am now Chief of Staff.

In that time the adage “Change is the only constant” really sums up the Asset Servicing part of Financial Services. From increased automation, increasing regulations to the advent of the latest digital disrupters such as BlockChain. It is an exciting industry that is critical to protect the retirement monies of all Australians.

Why should people get involved in ACSA including young professionals in the industry?

Being part of ACSA is a great way to stay on top of the latest developments in the industry, as well as a fabulous way to build networks with colleagues across the broader Industry.

As a voluntary organisation we are always looking for people who wish to contribute their time and expertise to help us ensure the smooth and efficient operation of the market, and in particular new changes such as Regulatory change. It is a very rewarding experience and I have learned a lot about parts of the industry my day job hasn’t given me exposure to.