ASX Projects $25-35 Million Operating Expense Rise in FY26 Due to ASIC Inquiry
ASX has revealed it expects to incur an additional $25 million to $35 million in operating expenses in FY26 due to the ongoing ASIC compliance inquiry. Despite this, the company remains committed to its five-year strategy focused on technology and risk management.
- ASX anticipates $25-35 million extra operating costs in FY26 from ASIC inquiry
- Costs include increased resourcing, legal fees, and a dedicated secretariat
- CEO Helen Lofthouse reaffirms commitment to technology modernisation
- FY25 financial results scheduled for release on 14 August 2025
- ASIC inquiry costs were not included in previous guidance ranges
ASX Quantifies ASIC Inquiry Costs
ASX Limited has provided a clearer picture of the financial impact stemming from the Australian Securities and Investments Commission (ASIC) compliance inquiry. The company now expects to face an additional $25 million to $35 million in operating expenses during the 2026 financial year. This update follows earlier guidance that did not factor in these potential costs, reflecting the evolving nature of the inquiry and its demands.
Breakdown of Increased Expenses
The anticipated cost increase covers a range of areas including ramped-up staffing levels, the creation of a dedicated secretariat to manage the response, legal fees, and other related internal and external expenditures. These measures underscore the seriousness with which ASX is addressing the regulatory scrutiny and the resources required to navigate it effectively.
Strategic Focus Remains Unchanged
Despite the financial headwinds posed by the ASIC inquiry, ASX’s CEO and Managing Director Helen Lofthouse emphasized the company’s ongoing commitment to its five-year strategic plan. Central to this plan are initiatives around technology modernisation and enhancing operational risk management and resilience; areas critical to maintaining ASX’s position as a leading market infrastructure provider.
Looking Ahead to FY25 Results
Investors and market watchers will be keenly awaiting ASX’s FY25 results announcement scheduled for 14 August 2025. This report will provide further insight into how the company is managing its operational costs and the broader impact of regulatory developments. The results will also offer a barometer for how well ASX is balancing regulatory compliance with its growth ambitions.
Navigating Regulatory Challenges
The ASIC inquiry represents a significant regulatory challenge for ASX, one that carries both financial and reputational implications. While the company has quantified the immediate cost impact, the longer-term consequences remain to be seen. ASX’s proactive approach to managing these costs and maintaining strategic focus will be critical in shaping investor confidence moving forward.
Bottom Line?
ASX’s ability to absorb ASIC inquiry costs while advancing its strategic goals will be a key market watchpoint in FY26.
Questions in the middle?
- How might the ASIC inquiry influence ASX’s operational priorities beyond FY26?
- Could further regulatory developments lead to additional unexpected costs?
- What impact will these increased expenses have on ASX’s profitability and shareholder returns?