Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Member) Appointment (No. 3) 2021

Overview

The Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Member) Appointment (No. 3) 2021 was enacted to fill a gap in the Australian Accounting Standards Board (AASB) by appointing a qualified part-time member, Sean Osborn. The Act was introduced under the authority of the Australian Securities and Investments Commission Act 2001, addressing the need for diverse and expert financial oversight within the AASB. The appointment was made by the Financial Reporting Council, which determined that Mr. Osborn is qualified according to the criteria set out in the parent Act. The policy objective is to ensure the AASB has the appropriate expertise and diversity necessary to effectively develop and maintain robust accounting standards in Australia. The Act was made by the Financial Reporting Council, which has the authority under the Australian Securities and Investments Commission Act 2001 to appoint part-time members to the AASB. The appointment aims to enhance the AASB's capacity to provide high-quality accounting standards that support investor confidence and the integrity of the financial markets. By ensuring that the AASB has suitably qualified members, the Act contributes to the broader goal of maintaining a transparent and efficient financial reporting environment in Australia.

Scope and Application

The Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Member) Appointment (No. 3) 2021 specifies the appointment of Sean Osborn as a part-time member of the Australian Accounting Standards Board for a specified period from 1 January 2022 to 31 December 2024. This appointment is pursuant to subsection 236B(2) of the Australian Securities and Investments Commission Act 2001, which requires the Financial Reporting Council to ensure that the appointed individual meets the qualifications outlined in subsection 236B(3) of the Act. The Financial Reporting Council, acting on behalf of the Commonwealth, makes this appointment to bolster the expertise of the Australian Accounting Standards Board, thereby influencing the financial reporting standards and practices across Australia. This appointment does not extend to any other entities or jurisdictions beyond the scope of the Australian Securities and Investments Commission Act 2001. The legislation ensures the selected individual contributes to the regulatory framework governing financial reporting and accountability within the country.

Key Provisions

The main provisions of the Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Member) Appointment (No. 3) 2021 (the "Instrument") include the appointment of Sean Osborn as a part-time member of the Australian Accounting Standards Board (AASB) for a specified period (section 1). This appointment is made by the Financial Reporting Council (FRC), under the authority provided in subsection 236B(2) of the Australian Securities and Investments Commission Act 2001 (the "Act"), subject to the satisfaction that Sean Osborn meets the qualifications outlined in subsection 236B(3) of the Act (section 1). The term of the appointment is from 1 January 2022 to 31 December 2024 (section 1). The obligations imposed by this Instrument on the parties include the requirement that the FRC ensure the appointee is qualified according to the specified criteria in the Act before making the appointment (section 1). Additionally, Sean Osborn, upon accepting the appointment, is expected to adhere to the governance and operational guidelines set by the AASB, ensuring the integrity and effectiveness of the AASB's functions during his tenure (section 1). The Instrument also implicitly requires Sean Osborn to maintain confidentiality and impartiality in line with the professional standards expected of AASB members (section 1). There are no specific offences, penalties, or civil/criminal consequences detailed in this Instrument. However, any breach of the terms of the appointment or failure to comply with the qualifications and standards expected of an AASB member could potentially lead to disciplinary actions or legal consequences under the provisions of the Australian Securities and Investments Commission Act 2001, which governs the AASB and its members. The penalties for such breaches would be determined in accordance with the relevant provisions of the Act (section 1).