ASIC sues ASX over bungled CHESS rollout
Corporate cop sues ASX, four out of five small businesses not ready to go cashless, and big telcos delay 3G shutdown. Here are five things you may have missed this week.
ASIC and ASX to face off in court
It's probably not what the ASX needs right in the middle of the company reporting season, but our stock exchange operator - ASX Limited (itself a listed company), is being sued by corporate watchdog ASIC.
ASIC alleges that ASX made misleading statements regarding its CHESS (clearing house) replacement project.
ASIC alleges that ASX announcements in February 2022 that the project remained "on-track for go-live" and was "progressing well" were misleading and deceptive because the project was not tracking to plan at all.
The CHESS replacement project, which proposed to use blockchain technology, was beset by issues, culminating in the ASX scrapping its initial plans in 2022 - six years after announcing its intention to replace CHESS.
ASIC Chair Joe Longo says, "ASX's statements go to the heart of trust in the integrity of our markets. We believe this was a collective failure by the ASX Board and senior executives at the time."
Helen Lofthouse, ASX managing director and CEO, has acknowledged the "serious nature of these proceedings", and says ASX will cooperate fully with ASIC's investigation.
It's not the first time the ASX has received a 'please explain' from ASIC.
Earlier this year, ASX paid a penalty of just over $1 million following an investigation into its compliance with the market integrity rules. More recently, ASIC took action against a 'pump and dump' scheme and attempted manipulation of commodities markets.
Small businesses not ready to give up cash
As Australia moves toward a cashless future, with bank branches and ATMs becoming thin on the ground, new research shows the small business sector is far from ready to farewell the folding stuff.
Xero's recent I Want to Pay That Way report shows almost four out of five (79%) small businesses would feel the pinch if cash and cheques disappeared.
Amid predictions of a cash-free society by 2030, the move away from cash has been helped along by banks phasing out cheques.
However, in a tough trading environment small businesses may have no choice but to bow to customer payment preferences - one in four (28%) Australians say they'd take their money elsewhere if a business didn't offer at least one of their preferred ways to pay.
That said, small businesses can experience odd requests when it comes to payment options.
Two in five enterprises say they've had shoppers try to barter for purchases, 26% have been offered gifts (usually alcohol or flowers) as a form of payment, and one in five report being offered a plug on social media in return for goods.
Telstra and Optus delay 3G shutdown
Telstra and Optus have pushed out the closure date of their 3G networks until October 28.
Telstra was due to shut its 3G network in August, with Optus to follow in late September.
The delay is part of a public safety awareness campaign that recognises phones are not the only things that rely on 3G.
Around 200,000 medical alert devices including personal medical alarms depend on Australia's 3G mobile network.
The Therapeutic Goods Administration is advising consumers who use these devices to contact the sponsor, supplier, or place of purchase. Manufacturers are being urged to get in touch with customers.
Meanwhile Telstra customers need to brace for higher phone charges.
The big telco will hike its postpaid mobile plans effective from August 27, 2024, and its pre-paid mobile plans from October 22, 2024.
The changes will see prices on most Telstra mobile plans increase by $2-$4 per month.
Three in four Aussies cop the run-around
Most of us have experienced poor customer service at some stage, but 85% say the problem is getting worse.
A CHOICE survey found that from telcos, to banks, insurers, and even ride-sharing apps, too many companies are giving consumers the run-around, with 73% of consumers saying they've been on the receiving end of poor service in the last year.
Making matters worse, consumers can come up against barriers that make it hard to resolve a problem. One in two CHOICE respondents say they've been kept waiting on the phone when trying to get help.
The scary part is that consumers may not have much recourse other than to vote with their feet.
CHOICE's Andy Kelly says, "Legally, there isn't much preventing companies from making it hard to get issues resolved."
In response, CHOICE is calling on the government to pass new fairness laws to prevent businesses from deliberately making it difficult to get problems resolved, like hiding contact details and creating lengthy hold times.
Banknotes featuring King Charles sell for 11 times face value
Support for the monarchy may be waning in the UK, but that hasn't stopped newly minted banknotes featuring King Charles selling for a small fortune at a recent charity auction.
The auction broke the record for the highest lot sold in a Bank of England banknote auction with a £50 sheet going for £26,000 ($50,400).
The big money spinner of the day was a single £10 note, which sold under the hammer for £17,000 ($33,000).
According to the Bank of England, the auction raised £914,127 ($1.8 million) for charity.
Here in Australia, coins featuring King Charles are expected to be released sometime this year.
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