In this Issue

• Market update – CHESS Replacement
• Regulatory Update – AUSTRAC, CoFR, and Treasury
• Members Update – ACSA Thought Leadership, Conferences, Events
• Global Perspective – Asset Servicing Automation
• Industry Insights
• Upcoming Events
• In Focus – Praveen Wijesekera

A word from our CEO

In this edition, we provide an update on next steps for the ASX CHESS replacement and share key insights and consultations from AUSTRAC, Treasury, and the Council of Financial Regulators. We also share results from a recent study on Asset Servicing Automation from our global colleagues at ISSA.

You can also read about what’s next for the ACSA Thought Leadership Series, our participation in the upcoming Investment Operations conference and how to get involved in our successful Coffee Buddies program.
This month we are In Focus with Praveen Wijesekera from NAB Asset Servicing.

We have re-designed the ACSA Industry Wrap to focus on key market and regulatory updates, member activities and global insights and share key event dates and recent insights from ACSA. We’d love to hear your thoughts.

Market Update

CHESS Replacement

ASX has confirmed it is progressing with the targeted delivery of the first phase of the CHESS replacement project in 2026. ASX also released its response to feedback received on the proposed two stage approach to implementation and the scope and design for delivery of clearing services (Release 1).
ASX Group Executive, Securities and Payments, Clive Triance, said: “The completion of the first of two key industry consultations on CHESS replacement is a notable milestone and the strong support we received for our initial proposals reflect the detailed engagement and consultation undertaken in the reassessment of the solution design.”

ASX will release Consultation Paper 2 – which focuses on the settlement and sub-register functionality – in August 2024.

Regulatory Update

AUSTRAC – National Risk Assessments

Australia has a strong anti-money laundering and counter-terrorism financing (AML/CTF) regime. However, criminals are always looking for new ways to evade the law. As their methods evolve, so do the risks to businesses, our financial system, and the broader community. AUSTRAC recently released two national risk assessments, which show the scale, sophistication and threat of money laundering and terrorism financing in Australia.

Follow the links below to find out more.

Money Laundering in Australia
Terrorism Financing in Australia

Treasury – Foreign resident capital gains tax and withholding.

The government announced a measure in the 2024–25 Budget to strengthen the foreign resident capital gains tax and withholding regimes. The measure will also improve certainty for foreign investors on their Australian tax outcomes, by aligning Australia’s tax law more closely with the Organisation for Economic Co-operation and Development’s Model Tax Convention on Income and on Capital.

Treasury has commenced two consultations in relation to the impact of these measures and the ACSA Tax Working Group is considering its response to the consultation. You can find out more about the consultations by following the links below.

Strengthening foreign capital gains tax regime
Improving the foreign resident withholding regime.

Council of Financial Regulators – Central Bond Clearing

There have been considerable changes in the size and structure of the Australian bond and repo markets in recent years. Recent analysis by Reserve Bank of Australia (RBA) indicates that the potential benefits of central clearing in these markets has increased, and that the case for central clearing may be stronger than previously assessed by the RBA in 2015.

The CoFR is consulting on the magnitude of any costs and benefits that may accrue from the introduction of a CCP in the Australian bond and repo markets and the ACSA Operations Working Group is considering its response to the consultation.

Members Update

Check out dates for ACSA’s webinar series and find out more about our participation at the upcoming IBR Investment Operations Conference. We have several speakers and panellists across this two-day event. Coffee buddies program is also back, so make sure you register by 9th August.

ACSA Thought Leadership Webinar Series

The ACSA Thought Leadership Series has several webinars planned on current topics including:
• Trends in global asset management
• Operational Resilience and CPS 230
• Updates on T+1
• Unlisted and private assets, and
• Evolutions in digital and crypto assets

Visit the ACSA website for the latest dates and schedule for the ACSA Thought Leadership Series.

ACSA at IBR Investment Operations Conference

Next month, we will be joining several members across the industry to host presentations and panels at the IBR Investment Operations Conference.

This annual forum is focused investment operations for both large and small organisations and provides an ideal introduction for those new to investment operations as well as providing the opportunity for experienced participants to hear from and network with their peers.

The event is taking place in Sydney on September 11-12, 2024. If you want to find out more about the conference you can access the full details here, or if you interested in joining a panel please contact admin@acsa.com.au.

Coffee buddies program

The ACSA Next Generation Leaders Working Group is pleased to continue the Coffee Buddies program for round 2. The program is designed to help industry colleagues build their professional networks and learn more about the industry.

Benefits include:

• Providing an opportunity to learn about other organisations within the industry and the overall custody industry
  
• Mentorship and Career opportunities
  
• Build connections for the next ACSA industry event
  

Registration closes 9 August 2024. Register here.

Global Perspective – Asset Servicing Automation

ISSA recently partnered with The Value Exchange to jointly launch a survey on the drivers for Asset Servicing Automation. The survey targeted three key constituents in the overall process: Issuers and their Agents, Securities Servicers, including Custodian Banks and Central Securities Depositories and Institutional Investors/Asset Managers.

The Survey deals with 4 key themes:

• How much are corporate actions costing in 2024?
  
• What root causes are we seeing trigger issues across the market?
  
• What steps are firms taking to minimise cost and risk?
  
• What is the longer-term case for industry standardisation from issuer to investor?
  

The key findings of that survey have now been published by The Value Exchange and are available for download here.

Key Events

• 9 August 2024: ACSA Coffee Buddies registration closes
  
• 23 August 2024: Webinar – ACSA Thought Leadership Series – Trends in Global Asset Management
  
• 11 September 2024: Conference - IBR Investment Operations Conference with ACSA leading panel discussions
  
• 13 September 2024: Webinar – ACSA Thought Leadership Series – T+1 Update
  
• 20 September 2024: Webinar – ACSA Thought Leadership Series – Evolutions in Crypto and Digital Assets
  
• 20 October 2024: Members Event (Sydney and Melbourne) - ACSA Members Update

Head to our events page to find out more and register.

Insights and Updates

• July 2024: ACSA response to Treasury consultation on meetings and proxy voting
  
• June 2024: ACSA response to AUSTRAC AML/CTF Modernisation Phase 2
  
• June 2024: ACSA response to ASX consultation on Accelerating Cash Equity Settlements to T+1

In Focus –Praveen Wijesekera

Praveen brings over a decade of operational experience working in various finance roles, specialising in data analytics, banking operations, tax, and accounting across multiple geographies, including Australia and the Middle East.

Praveen currently leads the Tax Operations team at NAB Asset Servicing. Since joining NAB in 2018, he has excelled in enhancing automation and controls, serving as the subject matter expert on the OSCAR reporting system. Praveen was recognised as a NAB Honouree in 2022 for his dedication and commitment.

Outside of work, Praveen enjoys staying active, spending time with family and friends, and travelling, having visited over 20 countries.

Quick fire five
Coffee or Tea? Coffee
Tik Tock, Instagram or Facebook? Instagram
Pop , Rock or Rap? Hip Hop and RnB
Cocktail or Wine? Both
Summer or Winter? Summer

You recently participated in the ACSA next generation leaders’ event, how would you like to see ACSA engaging those new to the industry?

I would like to see ACSA introduce initiatives that connect emerging professionals with experienced industry experts. Structured mentorship programs or interactive workshops would offer valuable insights, practical skills, and networking opportunities. Additionally, organizing regular events, such as the Coffee Buddies initiative, allows newcomers to share their experiences and challenges which would help in building a supportive and engaged community.

Tell us about your career in asset servicing / financial services? What lead you get involved in the custody industry?

My career in asset servicing and financial services began somewhat by chance when I was selected to support NAB Asset Servicing's initiative to enhance its tax reporting capabilities with the OSCAR system. This industry-leading, in-house developed technology, combined with the opportunity to collaborate with various teams across the value chain, has kept me engaged and motivated in the custody industry.


Why should people connect and engage in ACSA?

I think ACSA offers an excellent platform for cross-house collaboration and keeps you updated on industry news and initiatives that can either benefit your role or deepen your understanding of custody. It also provides valuable networking opportunities with other industry professionals.