ANAO, not ASIC, told Frydenberg about Shipton's expenses
The Federal Treasurer, Josh Frydenberg, has revealed that he only learned last Thursday of the expenses issues which have seen the chairman of the Australian Securities and Investments Commission (ASIC), James Shipton, stand aside, alongside his deputy chair, Daniel Crennan QC.
In a statement issued soon after Shipton’s declaration to the House of Representatives Standing Committee on Economics, Frydenberg said he had become aware of the ASIC chairman’s problems as a result of information sent to him by the Australian National Audit Office (ANAO).
“On 22 October 2020 I received correspondence from the Auditor-General for Australia bringing to my attention matters that he identified while conducting an audit of ASIC’s annual financial statements,” the Treasurer’s statement said.
“Specifically, the Auditor-General has indicated that during the 2019-20 financial statements audit of ASIC, the Australian National Audit Office (ANAO) identified payments made on behalf of the ASIC Chair, Mr James Shipton, relating to taxation advice and Deputy Chair, Mr Dan Crennan QC, relating to housing expenses that he considered may exceed the limits set in the Remuneration Determination made by the Remuneration Tribunal and that there were also identified instances where the Commonwealth Procurement Rules were not followed.”
“As made clear in ASIC’s 2019-20 Annual Report, tabled today, both the ASIC Chair and Deputy Chair have agreed to repay these amounts.”
Frydenberg said that as the matters identified by the Auditor-General related to the Accountable Authority of ASIC, he had asked the Treasury to undertake an independent review into the findings of the ANAO financial statements audit.
“Following the review, Treasury will advise me on the findings of the review and any further course of action that may be appropriate.”
“I have written to ASIC and the Auditor-General confirming this course of action. The independent review will be undertaken by Dr Vivienne Thom and is expected to be completed with the full cooperation of ASIC by the end of the year.”
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
