Acting for You, October 2024
by CATHERINE MAXWELL FGIA FCG General Manager, Policy & Advocacy, Governance Institute of Australia
Submission to the ASX – CHESS Replacement: Consultation on the Scope and Implementation of CHESS Replacement Release 2 (Settlement and Subregister)
In our response to the Consultation Paper, we expressed the view that the adoption of a staged approach to implementation of the new System will assist in mitigating industry risk and workload which was one of our chief concerns about previous iterations of the Project
We also identified the following issues of interest and concern to members:
- Stakeholder consultation and communication – we encouraged ASX to continue active consultation with all Project stakeholders. It will be fundamental to the Project’s future success that ASX continues to communicate clearly and engage with its stakeholders about the Project so that issuers and other stakeholders understand what is planned and how it will impact them.
- T+1 implementation – we noted the decision to defer implementation of T+1 until after CHESS Replacement but encouraged ASX to continue monitoring global developments to ensure Australia does not fall behind its international competitors.
- Costs and benefits for issuers – we acknowledged the substantial industry costs incurred to date as well as the significant workload ahead. We observed that our members want to understand how the new system will function and the cost to issuers. We encouraged ASX to ensure transparency about the costs of using the new system and the market efficiencies to be gained at the earliest opportunity and whether issuers will share in any efficiencies and costs savings generated by the new System. We also encouraged ASX to work with brokers, registries and other Project stakeholders to better enable digital communications.
- The Release 2 implementation timeline – while we have previously expressed concerns around a ‘big bang’ approach we acknowledged the significant work carried out recently to assess this approach to implementation. We encouraged rigorous industry testing and multiple dress rehearsals so that all involved can have a high level of confidence that the implementation will proceed smoothly.
Find our full comments in our submission here.
White Paper – AI Governance: Leadership Insights and the Voluntary AI Safety Standard in Practice
Governance Institute partnered with the National Artificial Intelligence Centre to launch a landmark white paper on AI Ethics and Governance.
Sending a strong message to businesses, the White Paper expressed the critical need for careful implementation and monitoring of AI technologies.
Titled AI Governance: Leadership Insights and the Voluntary AI Safety Standard in Practice, the white paper aims to guide Australian businesses in harnessing the transformative potential of artificial intelligence (AI) while adhering to ethical and safety standards.
Download the White Paper here.
GovBuzz Podcast- Governance & Risk Management Forum 2024 Series
Episode 1
First episode of the Governance & Risk Management Forum Podcast Series highlights keynote speaker, Lynette Mayne AM, a distinguished leader with a remarkable international career who is the Co-director at the Asian Development Bank and Executive Chair of The B Team Australasia.
We spoke to Lynette on the sidelines of the Sydney GRMF about reaching the goal of net zero by 2050 — how and if we will get there and the role governance will play in this goal.
Find Episode 1 here.
Episode 2:
The second episode features Julie Garland McLellan, Board Director for Dam Safety NSW & Suburban Land Agency in a conversation about the critical topic of assessing a sustainable growth and change strategy, exploring how organisational values can guide change and how governance can be integrated into planning and implementation.
Find Episode 2 here.
Episode 3:
This episode of the series, proudly sponsored by PKF, features Jenn Morris OAM, Non-Executive Director at Sandfire Resources, Liontown Resources, and Levin Health, and Olympic Gold Medallist.
Jenn shares insights about how effective governance can drive innovation and transformation amidst uncertainty by balancing performance with reinvention, managing significant changes, ensuring transparency and weighing risks to seize opportunities.
Find Episode 3 here.
Parliamentary Friends of Governance & Ethics
On 10 September, we hosted an expert roundtable on the future of independent advice to government as our second Parliamentary Friends of Governance & Ethics event for 2024.
With group co-chairs Bridget Archer MP and David Smith MP and Zoe Daniel MP, and Governance Institute CEO Megan Motto, the roundtable was well attended by key politicians including Senator Paul Scarr, academics, political advisors, public servants and executives from several industry associations.
The roundtable discussion examined three case studies of different governance models of giving advice to Government.
Professor of Corporate Law and Interim Deputy Dean of the University of Sydney Law School, Professor Jason Harris provided his insights to the history and merits of the former Corporations and Markets Advisory Committee (CAMAC).
This led to a lengthy discussion about the lack of a future focussed corporate law body in Australia today, and how CAMAC excelled at corporate law reform and operated with barely any financial burden to government.
We then heard from CEO of Engineers Australia, Romilly Madew AO about the role of Industry Associations in providing advice to government and the importance of co-designing advice-giving institutions with government to ensure buy in and the retention of corporate knowledge.
The final case study was presented CEO of the E61 Institute and former Chair of the Productivity Commission Michael Brennan, who spoke about the benefits of the Productivity Commission model and how it can be used as a guide for any expert advice-giving entities in the future.
The roundtable explored the perceived independence or lack thereof of advice-giving institutions funded by government and the important role clear governance structures can play to avoid any such misperceptions. It was an insightful and thought-provoking discussion.
The final Parliamentary Friends of Governance & Ethics event for 2024 will be our annual Ethics event.