Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 2) 2022

Overview

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 2) 2022, issued by the Financial Reporting Council, is a notifiable instrument that appoints Jason Thorne as a part-time member of the Auditing and Assurance Standards Board. Enacted to ensure the availability of qualified personnel within the auditing and assurance standards framework, this appointment aligns with the requirements set out in subsection 236F(2) of the Australian Securities and Investments Commission Act 2001. The objective of this legislation is to maintain and enhance the integrity and quality of financial reporting and auditing standards in Australia by ensuring the AUASB is staffed with suitably qualified individuals. This appointment is effective from 1 July 2022 until 31 December 2025.

Scope and Application

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 2) 2022 applies to the individual appointment of Jason Thorne as a part-time member of the Auditing and Assurance Standards Board. This appointment is made under subsection 236F(2) of the Australian Securities and Investments Commission Act 2001, subject to the condition that the Financial Reporting Council is satisfied that Mr. Thorne is qualified for the role in accordance with subsection 236F(4) of that Act. The appointment is effective from 1 July 2022 and will last until 31 December 2025. The Act itself does not specify broader application beyond the individual appointment; however, the Auditing and Assurance Standards Board, as an entity, plays a crucial role in ensuring high-quality auditing and assurance standards across Australia. The geographic reach of this appointment is inherently national, as the Board’s standards and guidance are applicable across all states and territories of Australia. There are no stated exclusions or exemptions within the scope of this specific notifiable instrument, but the broader application of the Auditing and Assurance Standards Board’s functions may be subject to various other legislative provisions. The appointment does not extend or restrict application through subordinate instruments, as it is a direct appointment under the specified subsection of the Act.

Key Provisions

The notifiable instrument (F2022N00152) appoints Jason Thorne as a part-time member of the Auditing and Assurance Standards Board (AASB) for a specified period, from 1 July 2022 until 31 December 2025. This appointment is made under subsection 236F(2) of the Australian Securities and Investments Commission Act 2001, and the Financial Reporting Council is satisfied that Jason Thorne meets the qualifications outlined in subsection 236F(4) of that Act (sections 1, 2). As a part-time member of the AASB, Jason Thorne is tasked with contributing to the board's mission of establishing and maintaining high auditing and assurance standards in Australia. His role will involve participating in board meetings, collaborating with other members to develop and review standards, and ensuring that these standards uphold the integrity and transparency of financial reporting. The obligations of Jason Thorne as a part-time member of the AASB include adhering to the guidelines and standards set forth by the Australian Securities and Investments Commission Act 2001. He is required to bring his expertise to the board's discussions and decision-making processes, ensuring that the standards developed are robust and in line with best practices in auditing and assurance. Additionally, Jason Thorne must maintain confidentiality regarding any sensitive information encountered during his tenure and act in the best interests of the public and the financial sector. The notifiable instrument does not explicitly detail offences, penalties, or consequences for breach in the context of Jason Thorne's appointment. However, the broader framework of the Australian Securities and Investments Commission Act 2001 imposes strict standards of conduct and accountability on members of the AASB. Any failure to meet these obligations could result in disciplinary action, including potential removal from office, and might lead to legal proceedings under the Act. The potential penalties for breaches of duty or misconduct by a member could include significant fines or imprisonment, depending on the severity of the breach.