Australian Securities and Investments Commission (Australian Accounting Standards Board Chair and Financial Reporting Council Member) Appointments (No. 1) 2025

Overview

The Australian Securities and Investments Commission (Australian Accounting Standards Board Chair and Financial Reporting Council Member) Appointments (No. 1) 2025 instrument, enacted on 13 May 2025 by Jim Chalmers, the Treasurer, under the authority of the Australian Securities and Investments Commission Act 2001, aims to address the need for leadership in the Australian Accounting Standards Board (AASB) and the Financial Reporting Council (FRC). This notifiable instrument provides for the appointment of Keith Kendall as the Chair of the AASB on a full-time basis and as a Member of the FRC on a part-time basis, each for a period of three months from the date of registration on the Federal Register of Legislation. The instrument reflects the policy objective of ensuring that these key regulatory bodies have the necessary expertise and oversight to maintain the integrity and effectiveness of financial reporting and accounting standards in Australia.

Scope and Application

The Australian Securities and Investments Commission (Australian Accounting Standards Board Chair and Financial Reporting Council Member) Appointments (No. 1) 2025I notifies the appointment of Keith Kendall as the Chair of the Australian Accounting Standards Board and as a Member of the Financial Reporting Council, both roles being full-time and part-time respectively for a period of three months following the registration of this instrument on the Federal Register of Legislation. This legislative instrument applies directly to Keith Kendall, who is appointed to these positions within the federal jurisdiction of Australia. The scope of the Act is limited to the specific appointments mentioned and does not extend to other persons, entities, industries, or types of conduct beyond the roles of Chair and Member as defined. The Act is issued under the authority granted by subsections 235A(1), 235AA(6), 236B(1) and 236BA(6) of the Australian Securities and Investments Commission Act 2001, thereby reinforcing its jurisdictional reach within the Commonwealth of Australia. There are no stated exclusions, exemptions, or thresholds within the text of this particular notifiable instrument, although the broader applicability of the Australian Securities and Investments Commission Act 2001 may be subject to further interpretation through subordinate instruments or related legislation.

Key Provisions

The Australian Securities and Investments Commission (Australian Accounting Standards Board Chair and Financial Reporting Council Member) Appointments (No. 1) 2025I, dated 13 May 2025, appoints Keith Kendall to two significant positions within Australia's financial oversight framework. Specifically, Section 2 of the instrument appoints Keith Kendall as the Chair of the Australian Accounting Standards Board (AASB) on a full-time basis for a three-month period starting the day after the instrument is registered on the Federal Register of Legislation (section 2(a)). Additionally, Section 2 also appoints Kendall as a Member of the Financial Reporting Council (FRC) on a part-time basis for the same three-month period, beginning on the same date (section 2(b)). Under this legislation, Keith Kendall assumes specific responsibilities and obligations. As the Chair of the AASB, Kendall must ensure the development and implementation of accounting standards that promote transparency and reliability in financial reporting (section 235AA(6) of the Australian Securities and Investments Commission Act 2001). This includes overseeing the AASB's work and ensuring its standards align with international practices where appropriate. As a Member of the FRC, Kendall's role is to contribute to the FRC's efforts in promoting high standards of corporate governance and accountability in Australia (section 236BA(6) of the Act). This involves participating in FRC activities aimed at improving financial reporting and ensuring that the FRC's policies and initiatives support robust financial oversight. Failure to adhere to the obligations outlined in this legislation can lead to various consequences. While the specific penalties for non-compliance are not detailed within the instrument itself, breaches of the Australian Securities and Investments Commission Act 2001, under which this instrument operates, can result in significant civil or criminal penalties. For example, individuals found to be in breach of the Act may face fines of up to $210,000 for individuals and $1,050,000 for bodies corporate, in addition to potential imprisonment terms for serious offences. The exact penalties depend on the nature and severity of the breach, as stipulated by the relevant sections of the Act. The instrument’s purpose is to ensure that Kendall’s appointments are conducted in accordance with the legislative framework, thereby maintaining the integrity and effectiveness of Australia's financial reporting and corporate governance systems.