ASX Settlement (ASX) has formally lodged with ASIC amendments to the ASX Settlement Operating Rules (“ASXSOR”):

• Removing the requirement for Participants to have received prior ‘written’ authority before changing a Holder’s Registration Details in CHESS for an existing Holder Record, including to update a Holder’s preferred form of communications to electronic (from postal);
• Removing the requirement for ‘written’ authority where a Participant uses alternative Registration Details (from those recorded in a Sponsorship Agreement) when establishing a Holder Record; and
• Making some clarification and formatting changes.

The amendments respond to a key impediment identified by Participants through the Statements Working Group convened by ASX to the increased take-up of electronic communications across ASX and Issuers for existing Holders. Relevantly their ability to rely on negative consent to obtain authority from existing clients to convert their holdings to electronic communications (from postal).

A number of benefits are realised through increased electronic communications including:

• Reduction of paper and postage; and
• Importantly for investors, a more timely and secure delivery mechanism for statements, including the availability of historical statements.

The ability for Holders to opt into electronic communications from ASX has been available since December 2021. However only approximately 20% of CHESS holding statements are currently delivered electronically to Holders (with only approximately 15% of Holder accounts in CHESS having opted in to electronic communications), despite approximately 70% of new Holder accounts established in CHESS in the 12 months to December 2025 having opted in to receive electronic communications from ASX (rather than by post).

To support a significant increase in the take-up of electronic communications across all Holders (facilitated in CHESS by Participants) it is therefore considered necessary there be a take up of electronic communications by a material number of existing Holders, with the amendments seeking to remove rule impediments to this.

As a result of the amendments, the ASXSOR will no longer prescribe the form of Holder authority required for Registration Details changes, with this to be a matter for the relevant Participant to determine having regard to the type of Registration Details change, its client documentation and its legal obligations.

A Participant will still be required to obtain the prior authority of a Holder for changes to Registrations Details to a Holder Record, however such authority will no longer be required to be ‘written’.  The Participant must retain a record of that authority.

The amendments also more broadly future proof the prescription under the ASXSOR of the Holder authority requirement for Participants to provide or update Holder Registration Details in CHESS, with such prescription being on a consistent basis across such details (ie. not just for changes to elect for electronic communications).

ASX will also issue guidance which recognises that Participants can take their own view (which may differ between each Participant) on the form of Holder authority required to opt a holder into electronic communications, including whether negative consent can be relied on, or whether they will continue to require written notification from the Holder.

This guidance will also note that a negative consent (or opt-out) process is expected to be relevant only to a change to a Holder’s communication preference, and not to other changes to Registration Details.

ASX will also be separately engaging with Participants to provide information on bulk opt-in arrangements applying to ensure orderly processing in CHESS of conversions to electronic communications across existing client holdings by Participants where relying on a negative consent (or opt-out) basis.

What do I need to do by when?

Participants should familiarise themselves with these amendments and comply with the updated requirements, including if seeking to rely on a negative consent (or opt-out) process to a convert the communication preference for existing client holdings to electronic (from postal).

Effective date

The ASXSOR amendments are intended to become effective on 16 February 2026 (subject to regulatory clearance).

Need more information?

The marked-up changes to the ASXSOR are attached to this notice for reference:

• ASX Settlement Operating Rules
• ASX Settlement Operating Rules Procedures 

Issued by

Nikki Swinson, GM Participants Compliance

Karen Webb, GM Issuer Services

Contact information

Con Korkofigas, Senior Legal Counsel and Senior Manager
+61 (02)  9227 0433
con.korkofigas@asx.com.au

Tegan Jones, Senior Legal Counsel
+61 (02)  9227 0262
tegan.jones@asx.com.au

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