Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 1) 2022

Overview

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 1) 2022, enacted by the Financial Reporting Council, appoints Marje Russ as a part-time member of the Auditing and Assurance Standards Board for a term running from 1 July 2022 until 30 June 2025. The legislation aims to address the need for qualified individuals to fill part-time positions on the Auditing and Assurance Standards Board, which plays a crucial role in maintaining and improving auditing and assurance standards within Australia. The appointment is made under the authority provided by subsection 236F(2) of the Australian Securities and Investments Commission Act 2001, ensuring that the appointee meets the qualifications set out in subsection 236F(4) of that Act. This appointment contributes to the overarching policy objective of ensuring robust oversight and high standards in the auditing and assurance sector.

Scope and Application

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 1) 2022 applies specifically to the appointment of Marje Russ as a part-time member of the Auditing and Assurance Standards Board (AUASB). This appointment is pursuant to subsection 236F(2) of the Australian Securities and Investments Commission Act 2001, with the condition that Marje Russ meets the qualifications outlined in subsection 236F(4) of the same Act. The role is intended to contribute to the AUASB's functions within the regulatory framework of financial reporting and auditing standards in Australia. The geographic and jurisdictional reach of this appointment is national, as the AUASB operates under the auspices of the Australian Securities and Investments Commission, a Commonwealth entity. This appointment does not outline any exclusions, exemptions, or thresholds beyond the statutory qualifications required. The application of this instrument is direct, without any noted extensions or restrictions through subordinate instruments.

Key Provisions

The main operative section of this legislation, F2022N00151, is the appointment of Marje Russ as a part-time member of the Auditing and Assurance Standards Board (AUASB) under the Australian Securities and Investments Commission Act 2001 (ASIC Act). Section 236F(2) of the ASIC Act provides the Financial Reporting Council (FRC) with the authority to make this appointment, subject to the condition that the person is qualified as per subsection 236F(4) of the Act. The appointment of Marje Russ is effective from 1 July 2022 until 30 June 2025. This period is explicitly stated to ensure clarity regarding the duration of her tenure. The obligations and requirements imposed by this legislation include the verification of Marje Russ's qualifications by the FRC. The FRC must be satisfied that she meets the criteria set out in the ASIC Act for such an appointment. This due diligence is critical to maintaining the integrity and effectiveness of the AUASB, which plays a pivotal role in setting auditing and assurance standards in Australia. The FRC's decision to appoint Marje Russ reflects a commitment to ensuring that the AUASB has the necessary expertise and experience to fulfil its regulatory functions effectively. Breach of the obligations outlined in this legislation could potentially lead to various consequences. Although the specific penalties are not detailed within the instrument, breaches of statutory requirements under the ASIC Act can result in civil or criminal penalties. These could include substantial fines or imprisonment, depending on the severity and nature of the breach. The FRC's decision to appoint a qualified individual is crucial, as any failure to adhere to the stipulated qualifications could undermine the effectiveness of the AUASB and potentially lead to regulatory scrutiny or enforcement actions against the FRC. It is therefore imperative that the FRC ensures that all appointments are made in accordance with the legislative requirements to avoid any legal repercussions.