Australian Securities and Investments Commission (Australian Accounting Standards Board Chair and Financial Reporting Council Member) Appointments (No. 2) 2025

Overview

The Australian Securities and Investments Commission (Australian Accounting Standards Board Chair and Financial Reporting Council Member) Appointments (No. 2) 2025I is a notifiable instrument enacted by the Treasurer, Jim Chalmers, under the authority granted by subsections 235A(1), 235AA(6), 236B(1), and 236BA(6) of the Australian Securities and Investments Commission Act 2001. The instrument was introduced to address the need for the timely appointment of a new Chair of the Australian Accounting Standards Board and a Member of the Financial Reporting Council. This appointment is necessary to ensure continuity in the oversight and regulation of financial reporting standards in Australia. Keith Kendall has been appointed as the Chair of the Australian Accounting Standards Board on a full-time basis, effective from 15 August 2025 until 30 June 2026, and as a Member of the Financial Reporting Council on a part-time basis for the same period.

Scope and Application

The Australian Securities and Investments Commission (Australian Accounting Standards Board Chair and Financial Reporting Council Member) Appointments (No. 2) 2025I is an instrument made under the Australian Securities and Investments Commission Act 2001. It specifically appoints Keith Kendall as the Chair of the Australian Accounting Standards Board, on a full-time basis, and as a Member of the Financial Reporting Council, on a part-time basis, for the period beginning on 15 August 2025 until 30 June 2026. This legislation applies directly to Keith Kendall and his dual roles within the financial regulatory framework of Australia. The instrument also extends its reach to the Australian Accounting Standards Board and the Financial Reporting Council, impacting their governance and oversight functions during the specified period. The geographic and jurisdictional reach of this instrument is national, as it pertains to federal entities involved in financial regulation. There are no stated exclusions or exemptions in this specific instrument, although broader implications and constraints may be governed by other sections of the Australian Securities and Investments Commission Act 2001.

Key Provisions

The main operative sections of this legislation, Australian Securities and Investments Commission (Australian Accounting Standards Board Chair and Financial Reporting Council Member) Appointments (No. 2) 2025I, involve the appointment of Keith Kendall to two key positions within the financial regulatory framework. Section 1 appoints Keith Kendall as the Chair of the Australian Accounting Standards Board (AASB) on a full-time basis, effective from 15 August 2025 until 30 June 2026. Section 2, meanwhile, appoints him as a Member of the Financial Reporting Council (FRC) on a part-time basis for the same period. These appointments are made under the authority granted by the Australian Securities and Investments Commission Act 2001, specifically subsections 235A(1), 235AA(6), 236B(1) and 236BA(6). Under this legislation, Keith Kendall is tasked with specific responsibilities and obligations related to his roles. As Chair of the AASB, Kendall will be responsible for overseeing the development and maintenance of high-quality accounting standards that ensure transparency, reliability, and comparability in financial reporting. His full-time role demands active engagement in setting these standards, which are crucial for the integrity of financial markets. As a Member of the FRC, Kendall will contribute to the oversight of financial reporting and auditing practices, ensuring they align with public interest and regulatory requirements. His part-time role involves participation in council meetings and the review of financial reporting practices. The legislation does not explicitly outline offences or penalties for breaches of the terms of these appointments. However, by virtue of the roles he is appointed to, Keith Kendall is subject to the broader regulatory framework under which the AASB and FRC operate. Any failure to discharge his duties in accordance with the expectations and legal requirements of these roles could potentially result in disciplinary action or removal from office. This could also lead to civil or criminal consequences if misconduct or breaches of fiduciary duties are found to have occurred. The specific penalties would depend on the nature and severity of the breach, as well as the applicable laws and regulations.