Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 2) 2021

Overview

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 2) 2021 was enacted to address the need for qualified part-time members on the Auditing and Assurance Standards Board (AUASB). This legislation was introduced by the Financial Reporting Council, as authorised under subsection 236F(2) of the Australian Securities and Investments Commission Act 2001, to appoint an individual deemed qualified according to subsection 236F(4) of the Act. The policy objective of this appointment is to ensure the AUASB has the necessary expertise and diversity of experience to maintain robust auditing and assurance standards within Australia. The legislation appoints Klynton Hankin to serve on a part-time basis from 1 January 2022 to 31 December 2024, thereby filling a critical role in the oversight of financial reporting standards.

Scope and Application

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 2) 2021 applies to the appointment of a part-time member to the Auditing and Assurance Standards Board (AUASB) within the Financial Reporting Council (FRC). This particular legislation designates Klynton Hankin as a part-time member of the AUASB, effective from 1 January 2022 to 31 December 2024, subject to his qualifications as stipulated under subsection 236F(4) of the Australian Securities and Investments Commission Act 2001. The Act operates within the Commonwealth jurisdiction, and its provisions are directly connected to the oversight and regulation of auditing and assurance standards in Australia. The appointment is made by the FRC, which is the body responsible for ensuring the integrity of financial reporting and corporate governance in Australia. The Act does not specify any exclusions, exemptions, or thresholds for this appointment, and its application is not extended or restricted by subordinate instruments.

Key Provisions

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 2) 2021 (F2021N00191) sets out the appointment of Klynton Hankin as a part-time member of the Auditing and Assurance Standards Board (AASB). This appointment is effective from 1 January 2022 to 31 December 2024 (section 1). The appointment is made under subsection 236F(2) of the Australian Securities and Investments Commission Act 2001, with the Financial Reporting Council confirming that Klynton Hankin meets the qualifications specified in subsection 236F(4) of the same Act (section 2). The appointment of Klynton Hankin imposes several obligations on him, including participating in the work of the AASB and contributing to the development of auditing and assurance standards. His role requires him to act with integrity and independence, ensuring that the standards developed are robust and in the public interest (section 3). Additionally, he is expected to comply with any codes of conduct or policies set by the AASB or the Financial Reporting Council. Failure to comply with the obligations and requirements of his role could lead to serious consequences. However, the specific offences, penalties, or consequences for breach are not explicitly detailed within the notifiable instrument itself. Generally, breaches of statutory duties or failure to act in accordance with the terms of appointment could result in disciplinary actions, including potential removal from the position. While the notifiable instrument does not specify maximum penalties, any legal proceedings for breaches would be subject to the relevant laws and regulations governing the AASB and the Financial Reporting Council. These could potentially include civil or criminal charges depending on the nature and severity of the breach.