ASX Sets Out Governance and Capital Plan After Tough ASIC Inquiry

ASX ( (AU:ASX) ) has provided an update.

ASX Limited has outlined a comprehensive response plan to the Australian Securities and Investments Commission’s final inquiry report, which found shortcomings in governance, risk management and culture across the group. The company’s Commitments Plan focuses on strengthening governance and independence in its clearing and settlement operations, resetting its Accelerate transformation program, uplifting leadership capability and meeting an additional $150 million capital charge tied to program milestones.

Chair David Clarke and CEO Helen Lofthouse said the ASIC inquiry marks a turning point for ASX, acknowledging a historically defensive culture and emphasising the need for deeper reform alongside structural changes. ASX highlighted steps already taken, including making the clearing and settlement facility boards fully independent, revising its risk management framework, enhancing regulatory engagement, and reducing its dividend payout ratio while activating a discounted dividend reinvestment plan to support capital accumulation.

The group reaffirmed its capital expenditure guidance of $170 million to $180 million for FY26 and $160 million to $180 million for FY27, with most spending directed to major technology projects under its modernisation plan. ASX also flagged that further investment decisions influenced by the inquiry’s findings and a strategy refresh are likely to push additional capex into FY28 and beyond, and it plans to provide FY28 capex and FY27 expense guidance by the end of the current financial year.

Total expense growth guidance for FY26 has been increased to 20% to 23% versus FY25, including costs associated with the ASIC inquiry and the implementation of the Commitments Plan. Excluding inquiry-related costs, ASX expects expense growth of 13% to 15%, underlining the financial impact of the transformation efforts even as the company seeks to rebuild regulatory confidence and strengthen its long-term market infrastructure role.

The most recent analyst rating on (AU:ASX) stock is a Hold with a A$57.15 price target. To see the full list of analyst forecasts on ASX stock, see the AU:ASX Stock Forecast page.

More about ASX

ASX Limited operates Australia’s primary securities exchange, providing listing, trading, clearing and settlement services across equities, derivatives and other financial products. The group is a key market infrastructure provider, with a strategic focus on technology modernisation, risk management and regulatory compliance to support the safe and efficient functioning of Australia’s capital markets.

Average Trading Volume: 734,300

Technical Sentiment Signal: Sell

Current Market Cap: A$10.22B

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