In this Issue

• Market update – ASX Release 1 update and ASIC’s ASX Review panel findings.
• Regulatory Update – Council of Financial Regulators (COFR) quarterly meeting and Australian Transaction
• Reports and Analysis Centre (AUSTRAC)’s reminder of Reporting Entity obligations
  
• Members Update – Recap of ACSA Gala Dinner and new events for ACSA Thought Leadership Series
  
• Global Perspective – SS&C Next Generation Middle Office white paper
  
• Upcoming Events
  
• Industry Insights
  
• In Focus –Wtax (New Associate member)
  
  

Introduction

Welcome to the March 2026 edition of the ACSA Industry Wrap.

In this edition, we provide members with key updates on market infrastructure and regulatory developments shaping Australia’s custody and investment services landscape. Highlights include the latest progress on ASX CHESS Release 1, insights from ASIC’s ASX Inquiry Panel Final Report, and important rregulatory updates from the COFR and AUSTRAC.

This issue also reflects on a significant milestone for the Association with a recap of ACSA’s 30 Year Celebration Gala Dinner, it outlines upcoming ACSA Thought Leadership Series events, and shares relevant global insights on next-generation middle office outsourcing. We also welcome WTax as a new Associate Member.

Market Update

CHESS Release 1 – progress update.

ASX continue to target CHESS Release 1 Go-Live on Monday 20 April 2026 and are progressing with internal governance activities. ASX expect to provide the next update on CHESS Release 1 on Tuesday 14 April 2026.

Key industry engagements leading to Go-Live:

• Technical Committee meeting
  
• AMO Acceptance forum (input into Go/No-Go meeting)

Further information on CHESS Release 1 can be located here. Further information on the ASX Technical

Committee and its working groups can be located here.

Should you have any questions, feedback, or additional considerations, please reach out via email to the CHESS Stakeholder Engagement Team or bilaterally with your ASX Stakeholder Engagement representative.

ASIC publishes ASX Inquiry Panel Final Report and acknowledges observations

ASIC has published the ASX Inquiry Panel’s (the Panel) Final Report into the Australian Securities Exchange (ASX) group. This follows the Panel’s nine-month analysis, focusing on governance, capability and risk management frameworks and practices across the group.

The Panel conducted more than 140 stakeholder interviews, reviewed submissions and an expert technical report of the CHESS system, undertook international benchmarking, held focus groups with ASX staff, and reviewed over 10,000 documents.

The key observations of the Final Report are consistent with the Interim report, and include that:

• Resilience of critical market infrastructure has been compromised to deliver high shareholder returns
  
• Governance arrangements fail to provide the necessary focus on critical market infrastructure
• ASX lacks the aspiration to be a steward of critical market infrastructure
• Capability and cultural barriers are hindering transformational change.

In addition to the Interim Report, the Panel observed that:

• ASX’s risk management and compliance practices need to mature to become fit-for-purpose and embedded in business processes. This contributed to ASX being overly reactive and tactical in its response to incidents and identified gaps
  
• An area that requires more reflection is the execution of ASX’s own market supervision responsibilities to monitor, supervise and enforce compliance with Operating and Listing Rules by participants and listed entities.

You can read the full ASIC report here, and also read the ASX response 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

COFR – Quarterly Update

The Council of Financial Regulators (the Council) held its regular quarterly meeting in March 2026.
The Council is the main coordinating body for Australia's financial regulators, with the ultimate aim of promoting the stability of the financial system and supporting effective and efficient regulation. It brings together the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), the Australian Treasury and the Reserve Bank of Australia (RBA).

The Council continued its discussion on the rapidly evolving international risk environment, following its meeting with the Treasurer, Assistant Treasurer and the Australian Competition and Consumer Commission (ACCC) last Friday. Global financial stability risks were elevated, following the escalation of conflict in the Middle East. Geopolitical risk had been a focus for the Council for some time; CFR agencies were engaged with industry and closely coordinating in assessing the implications for the Australian financial system.

Key matters discussed included:

• Systemic risks and vulnerabilities
• Crisis preparedness and coordination
• Cyber and operational resilience
• Better regulation
• Other initiatives
  

To access the full meeting minutes click here.
COFR also issued minutes of a Trans-Tasman Banking Supervisors meeting which can be found here.

AUSTRAC – Reminder of Reporting Entity obligations.

AUSTRAC has issued a reminder that from 31 March 2026 current reporting entities (‘Tranche 1’ entities) should not retain copies of full ID documents for AML/CTF record-keeping purposes. The AML/CTF regime does not require copies full ID documents to be kept, and entities obligations under the Privacy Act require them to minimise the data they’re retaining.

Entities must also have clear and accessible privacy policies and collection notices explaining how personal information is handled – unless issuing a notice would breach statutory tipping-off restrictions.
Privacy Commissioner @CarlyKind said, "One of the most significant risks to Australians’ privacy is the unnecessary retention of ID documents, which are some of the most important pieces of personal information Australians possess. Holding onto copies of ID documents not only creates risks to individuals, it creates risks for businesses, which will be more exposed in the event of a data breach. This new guidance provides important clarity of expectations that AML/CTF rules do not require such records.”

Find out whether you may have AML/CTF obligations on AUSTRAC's website: https://www.austrac.gov.au/amlctf-reform

Read OAIC guidance and privacy essentials checklist here: https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/organisations/privacy-guidance-for-reporting-entities-under-the-anti-money-laundering-and-counter-terrorism-financing-act

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 Gala Dinner recap

The Australian Custodial Services Association’s 30 Year Celebration Gala Dinner was a landmark occasion—bringing together industry leaders, past and present contributors, partners and friends to reflect on three decades of progress and to look confidently toward the future of custody and investment services in Australia.

Hosted by Effie Zahos, the evening marked a proud milestone for ACSA and the broader custody and investment services community. It was both a celebration of the association’s origins, achievements and the role custodians will continue to play at the centre of the Australian financial system.

Read more about the event here, or access the event gallery below.

Event Gallery
Check out the gallery of photos and videos from the evening below.

Professional Pics
Photobooth

ACSA Thought Leadership Program

The ACSA Thought Leadership Program continues, ACSA has hosted two insightful webinars so far in 2026 if you missed these you can see the recording on the ACSA Website here.

• T+1 – A Global Perspective
  
• Digital Asset Licensing – What does it mean?
  

Here is an insight into upcoming ASCA Thought Leadership Program webinars:

Exchange Traded Funds: Growth, Innovation and Best Practice

Friday 8th May 2026

Exchange Traded Funds (ETFs) have become one of the fastest growing segments of Australia’s investment landscape — reshaping how investors access markets, manage risk, and implement portfolio strategies.

This ACSA webinar will explore the continued growth of the ETF industry, spotlight current hot funds and product trends, examine best practice operational and governance approaches, and provide insights into the ACSA ETF Working Group’s focus and priorities.

Join us to hear from Industry experts: Rota da Silva - Ernst & Young,  Marsha Lee -  Calastone and Nicola Evans - J.P. Morgan.

Sign up for the webinar here.

2026 Fiscal Finale – ACSA Pre year-end tax update

Friday 22nd May 22nd

As the financial year draws to a close, the tax leaders of ACSA are sharing insights on key tax matters for ACSA members and their clients.

This update provides important information from industry tax leaders on regulatory change, emerging trends, and potential implications for ACSA members and their clients. With the ever-evolving landscape of tax laws and regulations, staying informed is paramount to ensure compliance and strategic tax planning.
Join us to hear from the ASCA Tax Working Group on key issues for financial year end.

Sign up for the webinar 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.

Global Perspective

Three Key Drivers of Next-Generation Middle Office Outsourcing

Why fund managers are shifting from cost savings to strategic advantage.

Middle-office outsourcing is no longer just about reducing costs. As complexity, regulation and trading volumes increase, fund managers are turning to outsourcing as a strategic lever for growth and operational resilience.

SS&C has released a white paper that explores how AI, automation and modern operating models are redefining outsourcing and why many firms plan to increase reliance on third-party providers in the coming years.

The three key drivers reshaping outsourcing: focus on core competencies, technology and scalability. How AI-powered operations improve data quality, transparency and decision-making. What to look for in a next-generation outsourcing partner.

Download the white paper here.

Key Events

• 8 May 2026: ACSA Thought Leadership Series - Exchange Traded Funds: Growth, Innovation and Best Practice
• 22 May 2026: ACSA Thought Leadership Series - 2026 Fiscal Finale – ACSA Pre year-end tax update
• 12 June 2026: ACSA Thought Leadership Program – Climate Reporting
  
  

Insights and Updates

• January 2026 - ACSA submission on Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2025
  
• December 2025 - ACSA Board of Tax Red Tape Reduction Review submission

Associate Member Profile – WTax

WTax manages and maximises withholding tax and class action recoveries for investors and financial institutions. We consistently increase investment performance by up to 52 basis points per annum for over 1000 clients globally, through optimising market coverage, shortening recovery timelines, and improving cash flow.

Bryan Gray | Brand Ambassador – Asia Pacific

Bryan Gray serves as the Brand Ambassador – Asia Pacific for WTax, where he plays a pivotal role in elevating the company’s profile among institutional investor clients and driving strategic growth across the region.

He brings over 35 years of industry experience in Australia and New Zealand, having held senior management, client services, and sales leadership positions at State Street Bank and JP Morgan, where he helped grow the business into the largest custodial services provider in Australia with over $1 trillion in assets under custody. Bryan has also served twice as director and chairman of the Australian Custodial Services Association and is a Chartered Accountant (Australia and New Zealand).

WTax recently joined ACSA as an Associate member, what are the benefits of being a member?

WTax’s recent membership in the Australian Custodial Services Association (ACSA) brings several meaningful advantages, particularly given our role in the custodial and investment administration ecosystem.
As an Associate Member of ACSA, WTax benefits from being part of a leading industry body representing more than 30 organisations within Australia’s custodial and investment administration sector. Membership provides us with access to industry insight, peer collaboration, and opportunities to participate in working groups, taskforces, and technical forums, helping us stay aligned with evolving market standards and regulatory developments.

It also strengthens our engagement with custodians and investment administrators - key partners in the foreign withholding tax recovery process - allowing us to collaborate more effectively, share expertise, and contribute to operational efficiency across the ecosystem. Through ACSA’s networking events and member forums, we can deepen relationships with industry professionals and remain connected to the issues shaping Australia’s financial services landscape.

Ultimately, our ACSA membership enhances our ability to support better withholding tax recovery outcomes for Australian investors, contributing both to improved client value and broader market efficiency.


Tell us about your business’s involvement in asset servicing / financial services? What is your primary focus?

WTax is a specialist provider in the asset servicing and wider financial services ecosystem, focused on cross-border withholding tax and securities class actions, and supports investment managers, asset owners, and custodians with an end-to-end recovery service.
Our primary focus is simple: enable investors to maximise investment returns while reducing operational and compliance burden across their withholding tax and class action recovery activities, delivering performance uplifts of up to 52 basis points per annum.

Our model is technology led, and expert driven. We develop our own platforms in-house, embedding AI and automation into every stage of the process, from data ingestion and entitlement analysis to claim filing and query management. This reduces manual workload for our clients by an average of 94 per cent, mitigates operational risk , and gives full transparency from initial claim to final payment.

This technology is underpinned by deep technical expertise. WTax has a global team of more than 250 experts globally and currently supports one in four of the world’s largest institutional investors.


What industry challenges do you help to solve?

Across withholding tax and class actions, investors face similar obstacles: intensive paperwork, varying language and form requirements, and limited in-house capacity, leading to unpursued claims, errors, or focus on only a few basic recovery markets.

In withholding tax recovery, rising scrutiny has increased queries, rejections, and evidence requests. Investors must provide detailed supporting documentation to demonstrate reclaim eligibility, but the required information is often dispersed across intermediaries and internal systems.

In class actions recovery, investors often lack a coordinated framework to track cases globally, assess eligibility using reliable data, enrol efficiently where there is clear value, and prepare and manage claims through multi-year processes, so a meaningful share of potential recoveries is never realised

This is exacerbated by fragmented reporting across intermediaries and investment markets, which makes it difficult to see what has been recovered and what remains outstanding.

WTax tackles these challenges by serving as a single specialist partner across both areas, delivering recovery solutions powered by purpose-built technology, AI, and technical expertise, to shoulder the operational burden, efficiently process reclaims, manage documentation and queries, optimise recoveries and deliver consolidated, transparent reporting.


What excites you about the future of the asset serving/custody industry?

The most interesting development in asset servicing and custody is the shift to genuinely data-led models. Automation, machine learning and generative AI are replacing manual, document-heavy workflows with systems that validate data, identify anomalies and keep complex processes moving with far less human intervention. For withholding tax and securities class actions, this means faster recovery times, improved consistency and the ability to scale across more investors and investment markets.

Another important trend is the rise of specialist providers. Instead of relying solely on broad asset servicing platforms, clients are selecting dedicated providers for specific domains like tax, class actions or compliance, and then integrating these capabilities into their existing infrastructure to achieve better client outcomes.

Within withholding tax and securities class actions, this is translating into demand for partners who can go well beyond basic reclaims. Investors want support for new markets, evolving asset types and complex investment structures, as well as the capability to utilise specialised claim types, such as legal claims via the European Court of Justice.

The direction of travel is clear: investors will operate in a market with far greater choice, where specialised offerings set a higher bar for accuracy, scalability and cost efficiency.