In this issue

• ACSA Members Event
• New ACSA Data Standard – Unit price data
• Digital Asset Custody – Blockchain week
• Cyber Security and Operational risk
• Global Insight – enabling improved data exchange
• In Focus – Ben Sung (Clearstream)

Introduction

In this month’s edition of the Industry Wrap we update on the next ACSA members event, the recent launch of the ACSA Unit Price Data Standard Working Group and some insights on digital assets, cyber security, and data exchange.

We are at the end of the financial year and ACSA would like to recognise the efforts from everyone in the industry who go above and beyond at this time of year to deliver critical reporting and other services to ensure the ongoing efficiency and quality outcomes required.

This month we are In Focus with Ben Sung, from Clearstream and ACSA director for Clearstream.

ACSA Members Event

After the success of our last members event held concurrently in Sydney and Melbourne to recognise our 2022 ACSA Award winners, we have made the decision for the next Members Event to also run concurrently in the two cities.

The next members event will be held in October 2023.

Keep track of the announcements of the members events on LinkedIn or on the events page of the ACSA website.

New ACSA Data Standard – Unit price date

ACSA is pleased to extend its focus on promoting efficiency and best practices for members, clients, and the market.

Following feedback from the market around the consistency of unit price data, ACSA has launched a sub-working group of the ACSA Regulatory Implementation and Data working Group to scope and define a data standard for sharing unit prices between industry participants.

The ACSA Unit Price Data Standard will benefit both publishers and recipients of unit prices (including unit registries, data providers and ultimately end investors) by improving operational efficiency and reducing risks.

The sub-working group is being chaired by Malcolm Sargeant, Citi Securities under the guidance of Jo Maiorana and Daryl Crich from the ACSA Regulatory Implementation and Data Working Group.

If you have an interest in joining the Unit Price Data Standard sub-working group, please contact us here.

Digital asset custody – Blockchain week

ACSA recently attended Blockchain week where discussion on custody of digital and crypto assets was front and centre. The next year is critical for delivering the regulatory setting needed for the digital and crypto custody arrangements and tokenisation of emerging digital and traditional products.

Blockchain week was filled with engaging discussions and expert insights into the rapidly evolving blockchain and digital asset industry. It included discussion on finance, custody, regulation, technology, and society, fostering innovative discussions shaping the future of the industry.

Topics included:

• The Evolution of Banking
• Revolutionising Payment Systems
• The Future of Digital Currency Exchanges and Custody
• Strategies for Navigating Disruption
  

More information can be found here.

Cyber security a centrepiece of operational resilience

APRA has recently announced changes following significant cyber incidents in Australia in late 2022, this action reflecting weaknesses identified in information securities environments.

APRA Member Suzanne Smith noted “APRA has repeatedly stressed the importance of an uplift in cyber security and continued vigilance to identify and address cyber exposures. Unfortunately, not all entities are heeding these messages as we continue to identify poor cyber security practices and inadequate oversight from boards and management,”

This reinforces the expectations on APRA regulated entities, related parties and third parties set out in APRA Prudential Standard 234 – Information Security. The Prudential Standard aims to ensure that an APRA-regulated entity takes measures to be resilient against information security incidents (including cyberattacks) by maintaining an information security capability commensurate with information security vulnerabilities and threats.
A key objective of the Prudential Standard is to minimise the likelihood and impact of information security incidents on the confidentiality, integrity, or availability of information assets, including information assets managed by related parties or third parties.

In addition, the APRA’s new cross-industry Prudential Standard 230 – Operational Risk Management is focused on strengthening operational resilience and sets out principles for operational risk management, business continuity and management of service provider relationships. Whilst the industry awaits finalisation of the new standard and guidelines, there is a clear connection to regulated entities maintaining appropriate and sound information and information technology (IT) infrastructure to meet their business requirements and to support critical operations and risk management.

Global Insight – ISO 20022 and enabling improved data exchange.

The International Securities Services Association (ISSA) recently conducted a survey into the adoption of ISO 20022, ISSA recently issued the results of their survey which include some interesting findings related to custody and securities services providers.

The capabilities of ISO 20022 - both as a data model and syntax - are recognised as a substantial improvement on ISO 15022. There are opportunities to use ISO 20022 in new areas - such as digital assets - however, for new assets to be able to interoperate with existing processes, ISO 15022 is still the preferred standard and there is no appetite to end coexistence of standards for these new products.

The key findings from the ISSA survey are:

• ISO 15022 is still the most widely used messaging standard by the global Securities Services industry.
  
• In the absence of regulatory or market entities driving this, the industry is unlikely to gain material global momentum towards ISO 20022 in the immediate future.
  
• The Euro-region, through regulatory and FMI requirements, is driving the most change and innovation in this space.
  
• The industry is struggling to form a clear business case for adoption of ISO 20022 both in terms of other higher priorities and challenges with the analysis of the real impact.
  
• Industry players are increasingly becoming ISO 20022 capable as part of their global systems agenda or futureproofing requirements towards market infrastructures, however, they are not currently activating these capabilities unless driven by investor demand, market rules or regulation.
  
• Given that co-existence between ISO 15022 and ISO 20022 will continue for some time, the industry should take a view on co-maintenance.
  

You can find the full ISSA ISO2022 survey report here.

In Focus – Ben Sung

Ben Sung
Head of Operations, Customer & Product, Clearstream

Ben has worked in the investment funds for 30 years. Joined Ausmaq Limited in 2007 and is now Head of Operations, Customer & Product at Clearstream Australia.

Prior to joining Ausmaq, Ben was Principal of PRD for 3 years, a leading real estate agency in Sydney.

Ben commenced his finance career at JP Morgan and has since held a number of roles in investment funds servicing from leading fund accounting teams, investment operations, risk and compliance , relationship management and now sales and product.

Quick fire five
Coffee or Tea? Coffee and Tea
Tik Tock, Instagram or Facebook? None of those - Twitter
Pop, Rock or Rap? Rock
Cocktail or Wine? Wine
Summer or Winter? Summer

Can you briefly describe your role and responsibilities?

Responsibility for the Operational team and Customers we serve with $110bn of funds in our custody.

What is the most satisfying part of your role?

Seeing the growth and development of the team who in turn are then able to deliver for our client’s day in and day out.

How do you motivate yourself and your team?

I’m blessed with plenty of self-motivation to do the best each day for our people and customers.
As a business we genuinely strive to care for and provide the best possible set of conditions/working environment for the team.

We appreciate we all have lives outside of work and seek to offer the flexibility to ensure the teams physical and mental wellbeing is optimised.

What are some of the exciting places your career has taken you?

Not the least my current role where you realise working for a global organisation gives you the opportunities to learn from your colleagues around the world.

I have always found Hong Kong to be so vibrant, but more recently have spent time in Singapore, Germany, London, Ireland, and Luxembourg.

What advice would you give your 21-year-old self?

Take on board constructive feedback, it can only help improve yourself and don’t be afraid to step outside your comfort zone.

What’s excites you about the future of our Industry?

There is still so much to do in the world of unlisted managed funds, which remains largely manual, and document driven.

Together with the ACSA, we as an industry can strive to still do so much more to improve investor outcomes, reduce risk, move towards contractual settlement, and reduce frictional costs associated with investing in this asset class.