Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 4) 2022

Overview

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 4) 2022 was introduced to address the need for qualified part-time members on the Auditing and Assurance Standards Board (AUASB). This legislation was enacted by the Financial Reporting Council under the authority granted by subsection 236F(2) of the Australian Securities and Investments Commission Act 2001. The policy objective is to ensure that the AUASB comprises individuals who possess the requisite qualifications and expertise to effectively set auditing and assurance standards. Terence Jeyaretnam was appointed to this role to fill a part-time position from 1 January 2023 until 31 December 2025, reflecting a commitment to maintaining the integrity and quality of auditing and assurance standards in Australia.

Scope and Application

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 4) 2022, issued under the authority of the Australian Securities and Investments Commission Act 2001, appoints Terence Jeyaretnam as a part-time member of the Auditing and Assurance Standards Board for the period from 1 January 2023 until 31 December 2025. This appointment is contingent on the Financial Reporting Council's determination that Mr. Jeyaretnam meets the qualifications specified in subsection 236F(4) of the Australian Securities and Investments Commission Act 2001. This legislative instrument is a notifiable instrument, which means it has been registered on the Federal Register of Legislative Instruments. The act applies to individuals qualified for such roles within the auditing and assurance standards domain, and it operates within the Commonwealth jurisdiction. The specific exclusions, exemptions, or thresholds for such appointments are detailed in the Australian Securities and Investments Commission Act 2001. Subordinate instruments may further extend or restrict the application of this appointment as needed.

Key Provisions

The main operative sections of the Notifiable instrument F2022N00259 pertain to the appointment of Terence Jeyaretnam as a part-time member of the Auditing and Assurance Standards Board (AASB). Section 1 of the instrument outlines the appointment of Jeyaretnam, who is deemed qualified under subsection 236F(4) of the Australian Securities and Investments Commission Act 2001. This appointment is effective from 1 January 2023 until 31 December 2025, as specified in Section 2. Under this legislation, the Financial Reporting Council (FRC) bears the responsibility of ensuring that the appointed individual meets the necessary qualifications for the role. Section 3 confirms the FRC's satisfaction with Jeyaretnam's qualifications as per subsection 236F(2) of the Australian Securities and Investments Commission Act 2001. The FRC, acting on behalf of the Council, is also tasked with the administrative and procedural aspects of the appointment, as highlighted in Section 4. In terms of obligations and requirements, the FRC must ensure that Terence Jeyaretnam meets the criteria for appointment, which includes having the necessary expertise and experience in auditing and assurance standards. This is a critical requirement to uphold the integrity and effectiveness of the AASB. Furthermore, Jeyaretnam, as a member, is expected to contribute to the development and maintenance of auditing and assurance standards in Australia, ensuring they align with both domestic and international best practices. Regarding potential consequences, the legislation does not explicitly outline specific offences, penalties, or consequences for breaches within the instrument itself. However, any failure by the FRC to comply with the requirements of the Australian Securities and Investments Commission Act 2001, or any misconduct by Jeyaretnam during his tenure, could potentially lead to legal actions under the broader legislative framework of the Act. The Australian Securities and Investments Commission (ASIC) oversees compliance and enforcement, and breaches could result in civil or criminal penalties as stipulated by the overarching legislation, including fines and potential disqualification from serving on such boards.