Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Chair) Appointment (No. 1) 2021

Overview

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Chair) Appointment (No. 1) 2021 was enacted to address the need for a qualified individual to chair the Auditing and Assurance Standards Board, an integral part of the financial oversight framework in Australia. This legislative instrument was introduced in response to the requirement under section 236F of the Australian Securities and Investments Commission Act 2001, ensuring that the individual appointed possesses the necessary qualifications and expertise to lead the board effectively. The appointment was made by Michael Sukkar, the Assistant Treasurer, Minister for Housing, and Minister for Homelessness, Social and Community Housing, who is responsible for ensuring that the appointee meets the criteria outlined in subsection 236F(4) of the Act. The policy objective is to maintain robust auditing standards and ensure the integrity and reliability of financial reporting within the Australian market.

Scope and Application

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Chair) Appointment (No. 1) 2021I, dated 29 June 2021, appoints William (Bill) Edge as the Chair of the Auditing and Assurance Standards Board for a term starting from 1 July 2021 to 30 June 2022. This appointment is made under section 236F of the Australian Securities and Investments Commission Act 2001 by Michael Sukkar, who holds the positions of Assistant Treasurer, Minister for Housing, and Minister for Homelessness, Social and Community Housing. The appointment is based on the satisfaction that Mr. Edge is qualified for the role in accordance with subsection 236F(4) of the Act. Notably, while the Chair of the Auditing and Assurance Standards Board is typically also appointed to the Financial Reporting Council, Mr. Edge's existing membership on the Financial Reporting Council, which expires on 28 July 2022, means his term on the Auditing and Assurance Standards Board does not extend to overlap with his Financial Reporting Council term. This appointment ensures continuity and expertise in the oversight of auditing and assurance standards within Australia.

Key Provisions

The main operative sections of the instrument (F2021N00135) include the appointment of William (Bill) Edge as the Chair of the Auditing and Assurance Standards Board (AUASB) for the period between 1 July 2021 and 30 June 2022. This appointment is made under section 236F of the Australian Securities and Investments Commission Act 2001 (Cth), and it is noted that Michael Sukkar, the Assistant Treasurer and relevant Minister, is satisfied that William Edge is qualified for this role as per subsection 236F(4) of the Act. Despite the usual practice of appointing the Chair of the AUASB to the Financial Reporting Council (FRC), William Edge is already a current member of the FRC, with his term set to expire on 28 July 2022. The obligations and requirements imposed by this instrument on William Edge, as the appointed Chair of the AUASB, include fulfilling the responsibilities associated with the role, such as overseeing the setting of auditing and assurance standards, ensuring these standards are robust and effective, and promoting the highest standards of professional conduct within the auditing and assurance profession. This appointment comes with the expectation that William Edge will continue to work collaboratively with the FRC, leveraging his existing membership to enhance the effectiveness and efficiency of both boards. There are no explicit offences, penalties, or civil/criminal consequences outlined in this particular instrument for failure to comply with the terms of the appointment. However, any breach of the obligations associated with the role could potentially lead to disciplinary action under the Australian Securities and Investments Commission Act 2001, depending on the nature and severity of the breach. Such actions could include removal from office, financial penalties, or other disciplinary measures as deemed appropriate by the relevant authorities.