The Federal Government has foreshadowed significant changes to the management of the Australian Securities and Investments Commission (ASIC) at the same time as confirming the departure of its chair, James Shipton.
Shipton will be allowed to return to his role but step down in coming months.
The Federal Treasurer, Josh Frydenberg said that notwithstanding that the Thom Report into ASIC had found no illegality in the issues surrounding the payment of Shipton’s advice fees, he would be leaving the organisation.
Frydenberg said the Thom review had made recommendations for significant improvements to ASIC’s internal practices, systems and processes to enhance its management of matters recommended for action by the Australian National Audit Office (ANAO), including internal audit management, quality assurance of legal advising processes and improving the management of and controls for spending relating to Commissioners.
“Dr Thom also noted issues of concern regarding the adequacy of ASIC’s processes concerning:
- The proper use and management of public resources;
- Systems of risk oversight and management;
- Systems of internal control; and
- Cooperation between ASIC officials.
Given the nature of the matters raised, the Government expects ASIC to implement as a priority the recommendations made by Dr Thom concerning its internal risk, management and governance arrangements and to report to me regularly on its progress,” Frydenberg said.
