Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 4) 2021

Overview

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 4) 2021, enacted on 5 October 2021, addresses the need for qualified part-time members on the Auditing and Assurance Standards Board (AASB) of the Australian Securities and Investments Commission (ASIC). This instrument appoints Joanne Lonergan to this role, ensuring the AASB has the necessary expertise to set auditing and assurance standards. The enactment follows the Financial Reporting Council's satisfaction under section 236F(2) of the Australian Securities and Investments Commission Act 2001 that Ms. Lonergan meets the qualifications outlined in subsection 236F(4) of that Act. The policy objective is to enhance the quality and integrity of financial reporting in Australia by providing the AASB with suitably qualified part-time members who contribute to the development of robust auditing and assurance standards.

Scope and Application

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 4) 2021 is a legislative instrument under the Australian Securities and Investments Commission Act 2001, specifically section 236F. This legislation applies to the appointment of a part-time member to the Auditing and Assurance Standards Board, which is responsible for developing auditing and assurance standards in Australia. The Act appoints Joanne Lonergan to this position for a specific term, from 1 January 2022 to 31 December 2024. The scope of this legislation is confined to the individual appointment of Joanne Lonergan and does not broadly extend to other persons, entities, industries, or specific types of conduct or transactions. The jurisdiction of this Act is federal, as it is issued under the Commonwealth authority of the Australian Securities and Investments Commission. There are no stated exclusions, exemptions, or thresholds in this particular instrument, and it does not extend its application through subordinate instruments.

Key Provisions

The key operative sections of the Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 4) 2021 legislation are found in the preamble, where it states the appointment of Joanne Lonergan as a part-time member of the Auditing and Assurance Standards Board (AUASB). The Financial Reporting Council (FRC) has made this appointment under the authority granted by subsection 236F(2) of the Australian Securities and Investments Commission Act 2001. The appointment is valid from 1 January 2022 until 31 December 2024. This period is clearly defined in the notifiable instrument, ensuring there is no ambiguity regarding the term of office for Ms. Lonergan. The Act imposes several obligations and requirements on the parties involved. Firstly, the FRC must ensure that any appointment to the AUASB is made in accordance with the qualifications stipulated in subsection 236F(4) of the Australian Securities and Investments Commission Act 2001. This implies that the FRC must conduct a thorough vetting process to confirm that Joanne Lonergan meets the necessary qualifications for her role. Additionally, the FRC, as the appointing authority, is responsible for formally documenting and announcing the appointment to ensure transparency and compliance with legislative requirements. On the other hand, Joanne Lonergan is required to fulfill the duties and responsibilities of a part-time member of the AUASB, which includes participating in meetings, contributing to the development of auditing and assurance standards, and adhering to any codes of conduct established by the AUASB. There are no explicit offences, penalties, or civil/criminal consequences outlined within this specific notifiable instrument for breach of the terms of appointment. However, any failure to comply with the qualifications or duties outlined in the Australian Securities and Investments Commission Act 2001 could potentially result in legal consequences. For instance, if Ms. Lonergan were found to be unqualified or failed to perform her duties, this could lead to proceedings under the broader legislative framework, including possible termination of her appointment and other legal actions. It is important to note that penalties and consequences would be determined based on the relevant provisions of the Australian Securities and Investments Commission Act 2001 rather than this particular notifiable instrument.