In this issue

• Introduction
• Clearstream becomes a full ACSA member joins the ACSA Executive Board
• Treasury crypto asset consultation
• Fund Tax Data Standard
• ISSA Digital Asset Update
• In Focus – Harpreet Ahuja

Introduction

Our first in person members event for 2 years has been confirmed for 16th August 2022, mark your calendar by following the event link here.

We continue to see increasing interest in our industry with ACSA’s LinkedIn following growing by over 20% since the start of the year. LinkedIn and member emails are ACSA’s preferred methods of communicating with members. Click the logos below to follow us on LinkedIn or sign up to the ASCA Website.

This month’s Industry Wrap covers plenty including:

• A new ACSA member and Executive Board member
• ACSA’s response to The Treasury’s “crypto asset” consultation on licensing and custody
• Automation of fund tax data
• A global perspective on data and
• In Focus with Harpreet Ahuja

Clearstream becomes a full member; joins ACSA Executive Board

In December 2021, Clearstream reported over $100 billion in assets under custody for the first time, an increase of 25.6% for the six-month period. Clearstream had previously been an associate member for over 10 years (including its predecessor AUSMAQ Systems Limited). Find more about Clearstream here.

In addition to becoming a full member, Clearstream nominated Ravi Subramaniam, Managing Director and Chief Executive Officer (Australia), to be its representative on the ASCA Executive Board. The ACSA Executive board has welcomed Ravi as a board director bringing with him deep experience and expertise in managed fund processing. Ben Sung, Head of Sales, Customer & product at Clearstream Australia is also welcomed by the ACSA executive board as Ravi’s alternate director.

ACSA Chair, Sally Surgeon commented, “We welcome Clearstream as a full member and Ravi to the ACSA Executive Board. We also look forward to working with Ravi and Clearstream in creating greater focus on the critical industry issues regarding managed fund processing.”

The ACSA executive board is now returned to its full complement of eight directors, Ravi fills the casual board vacancy that has existed since Citibank Securities Services acquisition of RBC Investor & Treasury Services business in Australia in 2020.

Treasury crypto asset submission

ACSA’s Digital Asset Taskforce has provided a submission to the Federal Government consultation paper on 'Crypto asset secondary service providers: Licensing and custody requirements'.

ACSA’s feedback focused on the following areas relating to licensing and custody of crypto assets: 

• Future regulation and laws being consistent in approach and terminology with other key global jurisdictions and existing Australian regulations and laws 
• Acknowledgement of existing AFSL license regimes and obligations
• Consistency in licensing outcomes and regulations between AFSL’s and Crypto Asset Service Providers (CASSPrs)
• Licensing requirements recognising the different roles that AFSL and CASSPrs fulfil in trading, settlement, and safekeeping of assets.

The ACSA submission was the result of industry collaboration through the Digital Asset Taskforce lead by the chair - Danielle Gerace, Northern Trust, and the sponsor – Sean Gardiner, JP Morgan. Thank you to everyone that provided input to the submission. More information on the consultation can be found here on Treasury’s website. The ACSA response can be found in the Digital Asset Taskforce tab of our website, this can be found here.

Fund tax data standard

ACSA has begun dialogue with clients and industry bodies on the utilisation and roll out of the ACSA Fund Tax Data Standard. The objective of the standard is to encourage an operating environment where fund tax data elements are digitally exchanged and can be interpreted without ambiguity driving greater integrity, timeliness, and consistency of tax data for distributions, withholding taxes, annual tax statements and regulatory reporting obligations.

More information on the ACSA Tax Working Group’s Fund Tax Data Standard can be found on the ACSA’s Tax Working Group website page, or you can access the artifacts representing the standard by following the links below.

• Tax Data Standard here.
• Access the Tax Data Schema here.
• Tax Return and AIIR mapping for 2021 here.

ISSA Digital Asset Update

The ISSA Working Group ‘Distributed Ledger Technology’ (DLT) published an updated “Crypto Assets: Moving from Theory to Practice – Revision 2022”. The paper explores the changes, since 2019, in issuance, settlement, safekeeping and asset servicing of Crypto Assets from a practical point of view.

It incorporates new sections on Reference Data, Withholding Tax, Insurance, and Cyber & Network Management, which were not covered in the original version. It also highlights the legal and regulatory implications of developing services and platforms for the issuance and trading of Crypto Assets. Large parts of the original Report “Crypto-Assets: Moving fromTheory to Practice – 2019″ are still valid and the two should be read together for a full view.

ISSA also issued a Distributed Ledger Survey, “DLT in the Real World”. You can check out the survey and respond by clicking here.

In Focus –Harpreet Ahuja

Harpreet joined HSBC in September 2019 as Director, Head of Product Management & Strategy, HSBC Securities Services Australia & New Zealand. In this role, Harpreet is responsible for driving the strategic direction of the business and further enhancing the existing product suite. Prior to joining HSBC, Harpreet was Product Manager, Global Fund Services at Citigroup for Australia and New Zealand. In this role he was responsible for Product Management, Product Development and Operating model design across all aspects of Fund Administration including Middle Office and Fund Accounting.

His other roles include Head of Fund Accounting at Citi where he was responsible for the implementation of large complex asset managers and owners, managing accounting and reporting teams as well as leading transformational projects. Prior to joining Citi, Harpreet was the Head of Unit Pricing at NAB where he led a large operations team.

Harpreet holds a Bachelor of Business, Bachelor of Computing and a Graduate Diploma in Applied Finance and Investments.

How long have you been involved with ACSA and can you tell us about the work you currently do with the association?

My involvement with ACSA began in 2018 where I was involved with the Managed Funds task force. From the beginning of 2020 I have represented HSBC on the ACSA Board and also as Executive Sponsor of the Regulatory Affairs working group. I recently stepped down to the role of an Alternate Director to the Board.

What do you believe are the current priorities for our industry and how can ACSA help us get there?

The current priorities for our industry are centred around some of the key infrastructure changes, the ever changing regulatory environment, promoting efficiency and to lead the discussion resulting from investment shifts such as Digital Assets. ACSA plays an important role within the industry having developed partnerships with regulatory bodies and peer organisations that allows us to represent the interest of our members and the wider custodial and investment administration sector. The custody and fund administration sector is understood the most by the people who work within it and the unique working group structure of ACSA with participants from different members provides unique and in-depth specialist view into the changes we as an industry are facing. This perspective from the practitioners of our industry is a strength for ACSA and how it can help us navigate these priorities.

Tell us about your career in financial services?

My career within the custodial and fund administration sector began in the early 2000s at NAB as a Unit Pricing Analyst and from there I have stayed within the industry. After spending a few years at NAB I moved to the UK for a short period where I worked at Mellon and returned back to NAB in 2006. In 2011 I had the opportunity to join Citi where I spent 8 years within Operations and Product roles prior to joining HSBC in 2019 heading up the Product team. I have been fortunate to have the various opportunities over the years and more importantly the opportunity to work with some talented individuals both here and overseas.

What advice would you give young professionals wanting to join ACSA?

The only piece of advice to young professional wanting to join ACSA is to get involved. If you are part of a Working Group then put your hand up and contribute in different ways, it is a very satisfying and rewarding part of our role and a very unique learning experience.