In this Issue

• Market update – ASX CHESS Incident, Valuexchange survey on Transformation of Securities Processing
• Regulatory Update – CFR Central Clearing Bonds and Repos, AUSTRAC tipping off offences, ASIC Sustainability Reporting
• Members Update – ACSA Awards, ACSA Members Event, ACSA Member Development Program and ACSA Thought Leadership Program
• Global Perspective – Evolution of digital asset in the EU
• Upcoming Events
• Industry Insights
• New Member and Business Profile – Evolution Trustees
• In Focus – Bruce Walker

Introduction

Welcome to the March 2025 edition of the ACSA Industry Wrap. In this edition we update you on the December ASX CHESS Incident and a survey on Transformation of Securities processing.

This issue also shares some interesting global content on the economics of tokenisation, plus details of our recent Members Event, ACSA Award winners and ACSA’s member development and thought leadership programs.

This month we are In Focus with Bruce Walker from BNP Paribas and share details of a new ACSA member – Evolution Trustees.

Market Update

CHESS Incident - RBA and ASIC respond

ASX has confirmed it has received a joint letter from the RBA and ASIC outlining regulatory action following the CHESS batch settlement incident on 20 December 2024. The settlement incident led to the delay in settlements across the cash equity market to the next settlement date. The ASX has previously released an incident report in relation to the matter.

The letter notes that the RBA has conducted an out-of-cycle assessment of ASX Clear Pty Limited (ASX Clear) and ASX Settlement Pty Limited (ASX Settlement) against its Financial Stability Standard for Operational Risk. As a result of the review, the RBA has revised its rating for the Operational Risk standard to “not observed” and made recommendations for ASX in response to the CHESS incident. You can read the joint letter here.

The ASX has also received a notice from ASIC directing ASX Clear and ASX Settlement to appoint an expert to conduct a technical review of CHESS and provide a report to ASIC within 150 days of appointing the expert. The ASIC notice can be found here.

Follow the link here to read the ASX response.


Transformation of securities processing - Survey

With the securities processing industry set to undergo a radical transformation in the coming years, Valuexchange is seeking industry input into preparations for the changes. Securities processing is at a turning point and insights and input from industry practitioners will help influence and guide future market developments.

Valuexchange would like to hear from industry practioners in Australia through an exclusive survey on the future of securities processing, run in partnership with FIS®. This 15-minute survey will further allow you to benchmark your transformation plans against those of your global peers.

Why participate?
✔ Gain insights into industry-wide transformation trends.
✔ Receive a personalised benchmarking scorecard to inform your 2030 strategy.
✔ Help shape the future of securities operations.
✔ See how your firm is positioned against other market participants.

To complete the survey, follow the link here.

Join the discussion.

If you’re interested in joining in ACSA’s discussions and response to market initiatives and industry consultations, please connect to us at admin@acsa.com.au.

Regulatory Update

Council of Financial Regulators (CFR) response to central bond and repo clearing consultation

The CFR conducted a public consultation on the case for central clearing of bonds and repurchase agreements (repos) in Australia. The consultation sought views from respondents on a range of related issues including:

(i) the costs and benefits of central clearing in these markets
(ii) market functioning and financial stability considerations, and
(iii) issues related to a prospective service being provided from overseas. This paper provides the CFR's response to the public consultation.

The CFR agrees with respondent feedback that the introduction of central clearing could enhance the efficiency and stability of the Australian bond and repo markets. The CFR supports the industry exploring the introduction of central clearing in the Australian bond and repo markets where the benefits are likely to outweigh the costs. The CFR does not consider there to be a compelling case for regulatory intervention to introduce central clearing in these markets at this time.
You can access more details on the CFR response here.

AUSTRAC Tipping off offences

Changes to the tipping off offence came into effect on 31 March to reflect amendments to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

The changes focus on whether disclosing suspicious matter report information would or could prejudice an investigation, rather than the disclosure of information itself.

Information protected by the tipping off offence includes:

• information about a suspicious matter report (SMR)
• information about notices given to you under sections 49 or 49B of the AML/CTF Act, and
• information about suspicious transaction reports under the (now repealed) Financial Transaction Reports Act 1988.

AUSTRAC has published guidance to help understand the changes and comply with their AML/CTF obligations.

Read the tipping off guidance here.

ASIC Sustainability Reporting

ASIC has published a regulatory guide on sustainability reporting following an extensive public consultation with stakeholders.

Regulatory Guide 280 Sustainability reporting (RG 280) provides guidance for entities that are required to prepare a sustainability report containing climate-related financial information. This may include companies, registered schemes, registrable superannuation entities, and retail corporate collective investment vehicles.

RG 280 includes guidance on determining who must prepare a sustainability report, the content required in the sustainability report, disclosing sustainability-related financial information outside the sustainability report (such as in disclosure documents and product disclosure statements), and ASIC’s administration of the sustainability reporting requirements

Find out more here.

Join the discussion.                      

If you’re interested in joining in ACSA’s discussions and response to market initiatives and industry consultations, please connect to us at admin@acsa.com.au.

Members Update

ACSA Awards

ACSA recently announced its annual award winners for 2024. The ACSA Awards acknowledge industry peers who have demonstrated exceptional performance in the past year or have made a notable ongoing contribution to the industry. The ACSA Chair Award is a nomination by the Chair of ACSA for significant industry contribution.

ACSA is pleased to recognise the following ACSA Award Winners:

• ACSA Award - Karen Gilbert, Stats Street Head of Risk in Australia
  
• ACSA Service to Industry Award – Josephine Maiorana, BNP Paribas Securities Services Head of Regulatory Watch and Market Advocacy -APAC
  
• ACSA Service to Industry Award – Elaine Cheung, JP Morgan Executive Director, product Manager Australia and New Zealand
  
• ACSA Service to Industry Award – Fergus Walshe, BNP Paribas Securities Services Tax product Manager (now retired)
  
• ACSA Chair Award – Andrew Gibson, State Street APAC Custody Product Head

ACSA Award Winner – Karen Gilbert

The ACSA Award goes to Karen Gilbert, State Street Head of Risk in Australia who has led a significant piece of work for ACSA in 2024 related to Operational Resilience.

With a new piece of legislation coming into effect in July 2025, which has a major impact on the ACSA industry, Karen stepped up and led the ACSA working group for CPS 230 throughout 2024 and onwards.

Within this body of work, ACSA has been viewed as an industry leader in providing open and transparent communication and solutions to ACSA’s APRA regulated clients.

Karen, as head of the ACSA CPS 230 Working Group has facilitated collaboration between the largest custodians in Australia, as well as with their clients, the regulator and other industry bodies.

In viewing the regulatory challenge, leadership of this group has been instrumental in considering solutions from a client perspective, adding value, efficiencies and simplification.


ACSA Service to Industry Award Winner – Josephine Maiorana

Josephine Maiorana, BNP Paribas Securities Services Head of Regulatory Watch and Market Advocacy – APAC, has been an chairing ACSA working groups for a few years with strong enthusiasm and dedication the Regulatory Implementation and Data Working Group; as such, she has been monitoring and following-up on a permanent basis many new or updated important regulations for the whole benefit of our industry and our clients (especially, recently the APRA Superannuation Data Transformation programs and the APRA CPS 230 Operational Risk Management).

Josephine’s strong working group management, along with her deep understanding and knowledge of the Australian financial industry has allowed all ACSA members to be provided with or get insightful information. Josephine has also engaged in smooth and efficient communication with regulators when needed and has contributed to guidance papers to ACSA members as key regulations have unfolded.

Service to Industry Award Winner - Elaine Cheung

Elaine Cheung, JP Morgan Product Manager, is the Deputy Chair of the ACSA Regulatory Implementation and Data Working Group and is an active member of the APRA Superannuation Data Transformation Sub Working Group.

Elaine has been instrumental in advancing the industry wide regulatory agenda, including:

• Submitting a comprehensive response to the consultation on the exposure draft of the Treasury Laws Amendment Bill 2024: Climate-related Financial Disclosure (Draft Legislation), demonstrating her expertise and commitment to shaping future regulatory frameworks, and

• ACSA’s detailed response to the APRA Superannuation Data Transformation Phase 2 Depth
Consultation, providing valuable insights and recommendations that reflect industry wide strategic priorities.

Elaine’s contributions have not only advanced business objectives but have also positively impacted the broader industry landscape. Her dedication and expertise have been essential to our success and the advancement of industry standards.


ACSA Service to Industry Award Winner – Fergus Walshe



Fergus Walshe, BNP Paribas Securities Services Tax Product Manager (now retired) made exceptional contributions to the ACSA Tax Working Group over the past seven years. Since joining the group in 2017 and assuming the role of Deputy Chair in March 2024, Fergus was an invaluable asset, leveraging his extensive experience in the financial services industry.

Fergus’ calm and considered approach has been instrumental in advancing the group's objectives and in recent months, has been at the forefront of several key initiatives. He has expertly overseen the ATO submission on AMIT deemed payments, negotiated pragmatic guidance on ATO Trust tax return disclosures and led constructive discussions and feedback on the FSC’s draft custodian tax governance questionnaire. His leadership in these areas has ensured that the submissions were comprehensive, well-researched, and effectively communicated the group's positions.

Fergus provided strategic guidance and technical expertise across a wide range of topics, including the analysis of foreign CGT adjustments under the Burton's decision case, non-cash collateral and other tax challenges.

ACSA Chair Award – Andrew Gibson

Andrew Gibson, State Street APAC Custody Product Manager has made an immeasurable contribution to ACSA, the custody industry at large and the careers of the countless people that have had the pleasure of working for, beside and with him over the course of his distinguished career.

Andrew has been at the forefront of the development of the custody industry, driving important changes at all levels that benefit custodians, clients and the financial services industry.

Andrew served on the ACSA Executive Board for around 8 years, was an Executive Sponsor of the Operations Working Group and has participated in various engagements with ACSA’s key industry stakeholders including the ASX.

He remains a mentor for many, is a constant positive, constructive and pragmatic voice.

ACSA Members Event

ACSA recently hosted its first Members networking event for 2025.
At the event, ACSA shared details of its focus and priorities for 2025, hosted Benji Brown, a Senior Relationship Manager at Pride and Diversity and announced the 2024 ACSA Award winners.

ACSA thanks all those involved for attending and those who assisted in organising the event.

ACSA Member Development Program

ACSA launched the ACSA Member Development Program in March – Connecting and Building Rapport. The program was delivered by Arabella Macpherson from Resonate Communications. If you missed the first webinar the video is available here (note access is only for registered ACSA website members)

The second webinar is on the 11th April focusses on Meeting preparation. One of the greatest fears people have is that they’ll bore others. But if your meeting centres around and answers the meeting invitees’ greatest questions, they can’t help but listen to you. This webinar will help you prepare properly, know exactly who you’re meeting with, what their problems are and what’s most important to them. By answering their most pressing questions and solving their biggest problems, they will not only trust you, respect you, but will also want more of you.

The program continues in May and the theme will centre around concise communication, equipping you with techniques to convey your message clearly and effectively. Finally, in June, we will focus on setting up successful meetings, providing strategies to engage stakeholders and keep discussions on track.

You can join the April session here.

ACSA Thought Leadership Program

The ACSA Thought Leadership Program is getting underway again in April, watch out for the event announcements.

Upcoming Webinar - May

"Navigating the Future: Global and Local Post-Trade and Securities Processing Trends”

This webinar will provide insights from DTCC on the evolving landscape of post-trade processes and securities handling. The session will provide valuable insights into the T+1 settlement cycles being implemented in the U.S. and Europe, explaining the transition, expected benefits, and challenges faced during implementation. Furthermore, the webinar will explore Central Bond Clearing in the US and the need for Trade Matching systems in Australia, highlighting their impact on market efficiency and operational risk reduction.

Future Webinars

We’re currently working on thought leadership content on climate reporting, asset management trends, CPS230 and Generative AI in Financial Services. We will update details on Linkedin and the ACSA website as we get the topics and presenters locked in.

If you have any suggestions for topics please email admins@acsa.com.au

2025 Elevating Women’s Voices Program – Ready to launch



It was great to see so many ACSA members sponsoring the Elevating Women’s Voices Program in 2025 and the organisers appreciate the number of nominations

On behalf of Alternative Investment Management Association (AIMA), 100 Women in Finance (100WF), and Australian Custodial Services Association (ACSA), we would like to invite you to join us to celebrate the opening event of 2024 Elevating Women's Voices, a communications course designed for women in the financial services industry.

Register to attend here.

Join the discussion. 

If you’re interested in joining in ACSA’s member engagement initiatives and industry consultation, please connect to us at admin@acsa.com.au.

Global Perspective

Economics of Tokenisation

  

The economics of asset management are shifting. A recent whitepaper from Calastone provides in-depth analysis of fund operating costs and how tokenisation can reshape financial dynamics across the industry. It breaks down the true cost structure of an average fund, the projected rise in expenses, and the potential for tokenisation to drive efficiency and profitability.

Key findings include:

• Fund operating costs currently stand at 0.74% of AUM and are set to increase by 32% over the next three years
• Tokenisation can cut fund operating costs by 23%, delivering savings of 0.13% of AUM
• Industry-wide, these efficiencies could generate $135bn in cost reductions
• Time to launch a new fund is expected to drop from 12 weeks to 9 weeks, with a 24% decrease in seed funding requirements
• Lower costs allow for more competitive fee structures, driving AUM growth and market expansion

Download the Calestone whitepaper here.

Business Profile – Evolution Trustees Limited

Rupert Smoker, CEO
Rupert founded Evolution Trustees with a view to creating a corporate trustee whose focus was on providing market leading client service through expertise and professional passion. Prior to this he was the head of a corporate trustee business (Responsible Entity and Managed Investment Trusts) within ASX listed corporate trustees Perpetual Limited and The Trust Company Limited and acted in a variety of management roles with ASIC. Rupert holds degrees in law, commerce and finance and is a registered legal practitioner in NSW.

Yvonne Kelaher, Director of Custody
Yvonne is responsible for Evolution Trustees’ custody business, with over 26 years’ expertise in corporate trusteeship, custody and debt capital markets. Yvonne has a proven track record in business management, development, transaction management, operations and client management. Before joining Evolution Trustees, Yvonne was head of the former Australian Executor Trustees Corporate Trust business. Prior roles were at State Street and Westpac Institutional Bank.  

Evolution Trustees recently joined ACSA as an Associate member, what are the benefits of being a member?
Being a member of the ACSA ensures that we have direct access to industry experts, regulatory updates and technological developments, along with the opportunity to join working groups. Members also benefit from training and development and participate in networking events.

Tell us about your business’s involvement in asset servicing / financial services? What is your primary focus?
Evolution Trustees focuses on providing services to managers of private and alternative assets leveraging a balanced combination of purpose-built technology and people with strong industry know how. A significant part of our business is supporting international organisations safely manage their Australian assets in an efficient and transparent manner. We are excited by the growth of the Australian superannuation sector and the ever-increasing shift to assets classes outside of publicly traded securities and bonds.

What industry challenges do you help to solve?
Evolution Trustees provides trust structures and a compliance framework to an array of asset classes, allowing the asset manager to focus on investment management.

What excites you about the future of the asset serving/custody industry?
The future of the asset servicing and custody industry is incredibly exciting. The market is bifurcating between large global players with international connectivity focused on the larger institutions and smaller local players with more bespoke offering for non-market traded assets. We think we have a lot to offer both the custodial services industry and the funds management world with our technical experience holding less commoditised assets like real estate, infrastructure, private equity/debt and other emerging assets.

In Focus - Bruce Walker

I have been in custody for approximately 40 years after first starting out in settlements at the AMP Society. Subsequent roles were many and varied from Fund Accounting to Unit Pricing to IT as well as my first taste of being a Client Service Manager.

In 2002, BNP Paribas acquired Cogent from AMP Capital and it’s at BNP Paribas where I am today. I think it’s at this stage where I say – where did the last 22 years go to?

From managing different teams of client facing experts to a stint as a Relationship Manager and with much more in between, recent years have finally seen me settle into what I like doing best which is my current role of being a Client Service Manager. I look after several large superannuation funds and insurance clients, and really enjoy the challenges that every day brings along with the client contact and friendships you make.

Can you briefly describe your role and responsibilities?
As a Client Service Manager, I am responsible for ensuring overall satisfaction of my client base across the full scope of services delivered by BNP Paribas’ Securities Services business both locally and globally. This includes escalation of day-to-day operations, monthly action log, service review meetings, and maintenance of SLAs, being across all key services and projects as well as conducting annual due diligence reviews.

It is my role to champion the client experience to achieve a desired level of service across the entire organisation. By understanding the client’s business and service expectations, I can translate this into service delivery requirements for each accountable team.

What is the most satisfying part of your role?
It’s probably two-fold. Firstly, knowing that what I am doing is assisting a colleague or fellow Client Service Manager in their day-to-day roles, and secondly knowing what we do as an organisation and me as an individual goes a long way to helping my clients meet their goals.

What are some of the exciting places your career has taken you?
Soon after BNP Paribas acquired Cogent, I was lucky enough to travel for two weeks to London, Paris, Portugal and then back to London. It was my first time in Paris and the whole trip was a great experience seeing the footprint of BNP Paribas globally. Since then, I have been lucky enough to also travel to Chennai twice – both times with client prospects.

What advice would you give your 21-year-old self?
Probably two things - be prepared for and accept change as this is the industry for it and be prepared for a wild ride at times – both good and bad. However overall, Bruce stick it out no matter what - for what you put in you will more than get back in great experiences, exciting times, friendships and wonderful achievements along the way.

What excites you about the future of our Industry?
The heart of what we do is for our clients. So, I am excited to see them continue to grow and explore new opportunities when they arise, for them to accept the challenges of the industry and finally adapt to ever evolving regulatory changes. This is where ACSA can assist on so many fronts.