Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 5) 2022

Overview

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 5) 2022, issued by the Financial Reporting Council, was enacted to address the need for qualified part-time members on the Auditing and Assurance Standards Board (AASB). This notifiable instrument was introduced to fill a gap in the AASB's composition, ensuring that the board has the necessary expertise and diversity of experience to effectively regulate auditing and assurance standards in Australia. The Financial Reporting Council, acting under the authority granted by the Australian Securities and Investments Commission Act 2001, appointed Andrew Porter for a three-year term starting on 1 January 2023 and ending on 31 December 2025, reflecting the legislative intent to maintain robust standards within the financial reporting and auditing sector.

Scope and Application

The legislation F2022N00296 pertains specifically to the appointment of a part-time member to the Auditing and Assurance Standards Board (AUASB) by the Financial Reporting Council (FRC). This appointment, which is effective from 1 January 2023 until 31 December 2025, is made under subsection 236F(2) of the Australian Securities and Investments Commission Act 2001, contingent on the FRC being satisfied that the appointee, Andrew Porter, meets the qualifications outlined in subsection 236F(4) of that Act. This appointment falls within the Commonwealth jurisdiction, as it involves the operation of federal legislation and the activities of a federal body, the AUASB, which plays a crucial role in setting auditing and assurance standards across Australia. The legislation does not specify any geographic limitations or exemptions, and it does not extend or restrict application through subordinate instruments.

Key Provisions

The main operative sections of the Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 5) 2022 (the "Notifiable instrument") are section 1, which appoints Andrew Porter to the Auditing and Assurance Standards Board (AASB) as a part-time member, and section 2, which specifies the duration of his appointment. Section 1 states that the Financial Reporting Council (FRC) has appointed Andrew Porter to the AASB, recognising his qualifications as required by 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 outlined in section 2. The Act imposes specific obligations and requirements on the parties involved. The FRC is responsible for ensuring that Andrew Porter meets the qualifications set out in the Australian Securities and Investments Commission Act 2001 before making the appointment. Andrew Porter, as a member of the AASB, is expected to uphold the standards and responsibilities associated with his role, including contributing to the development and maintenance of auditing and assurance standards in Australia. The AASB, as an entity, must integrate Andrew Porter's expertise and input into its decision-making processes to fulfil its statutory objectives. The Notifiable instrument does not explicitly detail specific offences, penalties, or civil/criminal consequences for breaches of the appointment provisions. However, any failure by the FRC to ensure that Andrew Porter meets the qualifications, or any failure by Andrew Porter to fulfil his duties as a part-time member of the AASB, could potentially lead to broader regulatory scrutiny or consequences under the Australian Securities and Investments Commission Act 2001 and related regulations. These could include disciplinary actions, removal from office, or other administrative or legal consequences as deemed appropriate by the relevant authorities.