On Apr. 15, ASX issued proposal re depositary nominee services.
ASX issued consultation paper on proposed amendments to the settlement operating rules for depositary nominee services for CHESS depositary interests (CDIs).
Proposes to expand CHESS Depositary Nominees Pty Limited (CDN) services as a depositary nominee under the rules to issuers in all licensed markets who request it.
Rule amendments intended to update the legal framework within which depositary nominee services are provided in respect of CDIs; terms on which nominee services currently provided limited to s13 of rules, do not reflect commercial provider terms.
Amendment Highlights
Provide ability for additional nominee terms to be specified on which depositary nominee holds principal financial products (other than government bonds); include requirement that principal issuer must give ASX Settlement written confirmation.
Namely, confirmation from the depositary nominee of its agreement to be appointed.
Include express right for depositary nominee to refuse to accept principal financial products in specific circumstances; principal issuer must not do anything under power of attorney that would cause nominee to breach nominee terms, rules or any law.
Impose obligations on principal issuer to act in good faith, with due care in selecting a delegate of its powers and monitor that delegate; in addition, provide that depositary nominee may revoke trust in specified circumstances; other limits, liability exclusions.
Effectiveness
The consultation period is open until May 16, 2025.
Regulators
ASX
Entity Types
B/D; Corp; Depo; Exch
Reference
CP, 4/15/2025
Functions
Compliance; Financial; Legal; Operations; Record Retention; Settlement; Trading
