ASX corporate governance principles
The proposed amendments to Principle 3 of the ASX Corporate Governance Principles and Recommendations encouraged submissions from both the Australian Institute of Company Directors and the Business Council of Australia warning against attempts to prescribe corporate culture and concepts such as a social licence to operate. The proposed re-draft of Principle 3 talks about companies electing to be "a good corporate citizen" and requiring them to "instil and continually reinforce a culture ... of acting lawfully, ethically and in a socially responsible manner". Following the Royal Commission, these concepts, which are already in many of the laws that apply to companies, should become much more prominent in the minds of directors and officers in the financial services industry.
The proposed fourth edition of the principles and recommendations was released by the ASX Corporate Governance Council on 2 May 2018. The consultation period closed on 27 July 2018 and 100 submissions were received. The final version is proposed to be released in early 2019 with commencement of the fourth edition to occur from the financial year beginning 1 July 2019.