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

Overview

The Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Member) Appointment (No. 5) 2022 was introduced to address the need for qualified part-time members on the Australian Accounting Standards Board (AASB). This piece of legislation was enacted to facilitate the appointment of David Holland to the AASB for a specified term, ensuring that the board has the necessary expertise to fulfil its role in developing accounting standards in Australia. The appointment is made by the Financial Reporting Council, as authorised under subsection 236B(2) of the Australian Securities and Investments Commission Act 2001. The underlying policy objective is to maintain the integrity and effectiveness of the AASB, thereby contributing to the overall stability and transparency of Australia's financial markets.

Scope and Application

The Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Member) Appointment (No. 5) 2022 is an instrument that falls under the purview of the Australian Securities and Investments Commission Act 2001. This legislation applies to the appointment of an individual, in this case, David Holland, to the Australian Accounting Standards Board on a part-time basis. The appointment is specifically made by the Financial Reporting Council, provided that the appointee meets the qualifications outlined in subsection 236B(3) of the Act. The jurisdiction of this appointment is national, given that the Australian Securities and Investments Commission is a Commonwealth entity and its Act is applicable across the entirety of Australia. This appointment does not appear to include any exclusions, exemptions, or specific thresholds, but rather focuses on ensuring the appointee's suitability according to the criteria set forth by the Act. The Act also allows for the extension or restriction of the application through subordinate instruments, although this particular instrument does not detail any such provisions.

Key Provisions

The primary section of this legislation (section 1) appoints David Holland as a part-time member of the Australian Accounting Standards Board (AASB) for a period beginning on 1 January 2023 and ending on 31 December 2025. The appointment is made by the Financial Reporting Council (FRC), which has determined that Mr Holland is qualified for the position in accordance with subsection 236B(3) of the Australian Securities and Investments Commission Act 2001. This appointment ensures that the AASB has a qualified individual to contribute to the development and maintenance of accounting standards in Australia. The obligations imposed by this Act on Mr Holland and the AASB include fulfilling the responsibilities of a part-time member as outlined in the Australian Securities and Investments Commission Act 2001. This typically involves participating in meetings, contributing to the development of accounting standards, and adhering to the ethical standards and codes of conduct applicable to members of the AASB. The FRC's role in this process is to ensure that appointees meet the necessary qualifications and that the appointments are made in the public interest. There are no explicit offences, penalties, or civil/criminal consequences outlined in this legislation for breach of its provisions. However, the underlying legislation, the Australian Securities and Investments Commission Act 2001, includes provisions for penalties in cases of non-compliance with the AASB's standards or for breaches of the ethical and conduct requirements applicable to its members. These penalties can include fines and, in severe cases, criminal charges. The specific penalties would depend on the nature and severity of the breach and would be determined under the relevant sections of the Australian Securities and Investments Commission Act 2001. The appointment of David Holland is a formal and necessary step to ensure the AASB continues to have the expertise required to develop and maintain high-quality accounting standards. The FRC's role in vetting and appointing qualified individuals is crucial to maintaining the integrity and effectiveness of the AASB. This legislative instrument is a straightforward appointment notice that ensures the continuity of the AASB's work in regulating accounting standards in Australia.