The Australian Stock Exchange (ASX) is making it easier for financial planners to access CHESS via a new method – Account Participation – which it will launch at this week’s Financial Planning Association conference.

Financial planners using the new method for clients’ share trades will not need to surrender their information to a broker. Trade execution will also be much quicker than current broker-sponsor and issuer-sponsor models. A licensed broker will still need to be used but any information passed onto the client will be via the planner and will be badged with the planner’s details. The service will carry an initial fee of $2,500 plus an annual fee of $2,500 compared to the current brokerage fee model which can vary broadly depending on the broker. The ASX has hired a consultant – Robert Marie – to assist in promoting the service to planners and is already in talks with a number of dealer groups according to Richard Murphy, ASX general manager primary and structured product markets. “Rather than giving client details over to the broker we think it would be useful for planners to use this model,” he said. The ASX is currently completing the facility, which has been available to margin lenders for some time, and plans to have it up and running for dealer groups by the end of this year. A number of larger wholesale brokers will also be promoting the facility as a means of diversifying their client base, although it will bring in less revenue than their traditional brokerage models. Murphy said the ASX would not allow dealer groups without broking licences direct access to CHESS. “We regulate brokers really heavily. It would be inappropriate to say anybody can become a direct trade participant without going through the same process,” he said.

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