The Australian Securities Exchange (ASX) has appointed Philip Lowe, who led the Reserve Bank of Australia (RBA) during the pandemic years, as Chairman of a new panel that will advise on corporate governance standards for companies listed on the exchange.
Former RBA Governor Philip Lowe Named Chairman of ASX Governance Panel
Lowe will head the Advisory Group on Corporate Governance, which takes over from the ASX Corporate Governance Council. The old council had 19 members and was scrapped in October after an independent review found it too large and unable to agree on updates to governance rules.
The exchange now holds direct authority to approve and publish its Corporate Governance Principles and Recommendations. The advisory group, which will have between six and ten members, provides input but doesn't make final decisions.
“I am confident that through open dialogue, broad consultation and evidence-based advice, ASX with the support of the advisory group can develop Principles that are widely supported by the market," Lowe commented on the move.
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Exchange Takes Direct Control
ASX CEO Helen Lofthouse said the exchange will work with Lowe to fill the advisory positions quickly. She thanked the former council members who shaped governance practices for Australian companies over more than 20 years.
“ASX is delighted to have a Chair of the calibre of Dr Philip Lowe, given his deep understanding of Australian financial markets, policy development and stakeholder engagement,” she commented.
The old council ran into trouble earlier this year when it tried to update reporting requirements around board diversity. The proposal, which would have expanded disclosures beyond gender, faced pushback and never made it through. That failure prompted the review that led to the council's dissolution.
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Governor Brings Decades at Central Bank
Lowe started at the Reserve Bank in 1980, straight out of school. He moved up through various departments over the years, including stints running economic research and financial stability divisions. He spent two years at the Bank for International Settlements in Switzerland before returning to become deputy governor in 2012.
He took over as governor in September 2016 and served until September 2023. During his time at the top, he dealt with the pandemic response, which included cutting interest rates to 0.1 percent and pumping billions of dollars into the economy through bond purchases and cheap loans to banks.
The policies helped Australia recover faster than most developed countries, but they also led to criticism. An independent review found the bond program and lending facility resulted in losses between A$30 billion and A$58 billion, leaving the central bank technically insolvent. The bank stopped paying dividends to the government and won't resume until it returns to positive equity, which could take until 2032.
Since leaving the central bank, Lowe has taken on a handful of positions. He chairs Future Generation Australia, a social investing firm, and sits on the boards of the Victor Chang Cardiac Research Institute and Barrenjoey Capital Partners.
Members Sought From Across Market
Lowe said strong governance remains central to the reputation of Australia's public markets.
“This new advisory group provides an important opportunity to establish practical governance practices that drive long term value for shareholders and listed entities,” he added.
The exchange is now looking for advisory group members and wants nominations from industry bodies and stakeholders. It's seeking people like a superannuation fund chair or chief investment officer, directors with experience at large and small listed companies, an investment manager, a company secretary, and a stockbroker with expertise across retail and institutional investors.
