Henry brings Asia eye to ASX board
Ken Henry, who has recently overseen Canberra's Asian century white paper, which sets out a blueprint for Australia's engagement with the region, will take up the position next month.
This is the second corporate sector appointment for the ex-Treasury boss. He joined the National Australia Bank as a director last year.
"Ken's reputation and experience as an economist in Australia and overseas, and as a senior bureaucrat who has worked with successive Australian governments, will bring fresh perspective and strengthen the expertise of the ASX board," the ASX chairman, Rick Holliday-Smith, said.
SGX's takeover bid for ASX was scuttled by the Treasurer, Wayne Swan, in April 2011 on the advice of the Foreign Investment Review Board and Treasury Department shortly after Dr Henry's retirement.
The exchange is defending its monopoly over its lucrative settlement and clearing business, which was identified by the Reserve Bank and other regulators as a source of financial risk during the SGX's take-over bid.
Dr Henry was the leading economic adviser to the Rudd government during the global financial crisis and was responsible for implementing the $42 billion stimulus package, which is partly credited for rescuing Australia from a recession.
However, he and his stimulus policy of "go hard, go early and go household" was attacked by the Coalition and a former Treasury secretary and one-time National Party senator, John Stone, who accused Dr Henry of abandoning his political impartiality.
Dr Henry, who is widely considered to be one of the country's leading tax experts, was involved in the full roller-coaster of major tax changes from the mid-1980s until the end of his tenure at the department, including the tax reform package of 1985, GST implementation under the former prime minister John Howard and the Henry Review for the current government.
His experience in managing the government's white paper on the Asian century is likely to bolster the ASX's Asia expertise as the exchange looks to the region for growth opportunities.
Frequently Asked Questions about this Article…
Ken Henry is a former Australian Treasury boss and senior government adviser who oversaw the Asian century white paper. He led major economic policy work including the $42 billion stimulus during the global financial crisis and is widely regarded as a leading tax expert. The ASX appointed him to bring economic, tax and Asia-focused expertise to its board.
The appointment signals a renewed ASX focus on the Asia Pacific region. Henry managed the government's Asian century white paper, and the ASX expects his experience to bolster the exchange's Asia expertise as it looks to the region for growth opportunities.
Henry's career as Treasury secretary and senior economic adviser gives him deep experience with fiscal policy, tax reform and government regulation. That background could help the ASX navigate regulatory scrutiny — including issues flagged by the Reserve Bank and other regulators — and strengthen the board's economic perspective.
The 2011 takeover bid by the Singapore Exchange (SGX) for ASX was blocked by the Treasurer on advice from the Foreign Investment Review Board and Treasury. Appointing Henry, who worked on Asia policy, is seen as part of ASX's renewed engagement with the region after that aborted merger attempt.
The article notes the ASX is defending its monopoly over its lucrative settlement and clearing business, which the Reserve Bank and other regulators identified as a potential source of financial risk during the SGX takeover bid. This regulatory focus is something investors may want to watch.
Henry was the leading economic adviser during the global financial crisis and responsible for implementing the $42 billion stimulus package credited by some with helping Australia avoid recession. His policies were also politically contested. His track record in high-level economic decisions may reassure some investors about his expertise while prompting others to review his policy legacy.
Yes. The ASX appointment is Henry's second recent corporate role — he joined the National Australia Bank as a director last year — giving him direct board experience in the financial sector that is relevant to the ASX's operations.
Ken Henry is due to take up the ASX board position next month. ASX chairman Rick Holliday-Smith said Henry's reputation and experience as an economist and senior bureaucrat would bring a fresh perspective and strengthen the expertise of the ASX board.
Call 1300 880 160
Start a chat
Schedule a call
