Australian Securities and Investments Commission (Financial Reporting Council – Member) Appointment (No. 1) 2024

Overview

The Australian Securities and Investments Commission (Financial Reporting Council – Member) Appointment (No. 1) 2024I was enacted on 25 June 2024 by Dr Jim Chalmers, Treasurer, under subsections 235A(1) and 235AA(6) of the Australian Securities and Investments Commission Act 2001. This notifiable instrument appoints Michele Embling as a part-time member of the Financial Reporting Council, effective from the day after its registration on the Federal Register of Legislation until 30 April 2025. The appointment aims to address the need for skilled and experienced individuals to contribute to the oversight and improvement of financial reporting standards in Australia. The underlying policy objective is to ensure the integrity and transparency of financial reporting, thereby enhancing investor confidence and protecting the interests of the broader public.

Scope and Application

The F2024N00621 Notifiable Instrument outlines the appointment of Michele Embling as a part-time member of the Financial Reporting Council (FRC) by the Treasurer, Jim Chalmers, under the authority vested in him by the Australian Securities and Investments Commission Act 2001. This appointment is effective from the day following the instrument's registration on the Federal Register of Legislation and will continue until 30 April 2025. The FRC is responsible for overseeing the quality and integrity of financial reporting in Australia, and its members are crucial in ensuring compliance with financial standards and regulations. The instrument signifies the Commonwealth's commitment to maintaining robust financial oversight mechanisms and highlights the importance of independent and expert voices in the FRC's deliberations and decisions. The appointment is a statutory requirement under the Australian Securities and Investments Commission Act 2001, which underscores the legislative intent to maintain high standards of financial reporting and accountability within the nation.

Key Provisions

The main operative sections of this instrument (F2024N00621) involve the appointment of Michele Embling as a member of the Financial Reporting Council (FRC) under the Australian Securities and Investments Commission Act 2001 (ASIC Act). Section 235A(1) and 235AA(6) of the ASIC Act empower the Treasurer, Jim Chalmers, to make this appointment. The appointment is on a part-time basis and is effective from the day after the instrument is registered on the Federal Register of Legislation until 30 April 2025. This periodisation ensures clarity regarding the duration of Michele Embling's role within the FRC. The obligations and requirements imposed by this Act on Michele Embling, as a member of the FRC, include adhering to the governance and regulatory standards set by the FRC. These standards are designed to maintain the integrity and transparency of financial reporting within Australia. Michele Embling is expected to contribute to the FRC’s responsibilities, which may include setting accounting and auditing standards, overseeing the quality of audits, and ensuring that financial reporting practices are robust and reliable. Her part-time role still entails meeting all the professional and ethical standards expected of a FRC member. Breaches of the duties and obligations outlined in this instrument may lead to various consequences. While the specific offences, penalties, or civil/criminal consequences are not detailed in the instrument itself, the ASIC Act provides a framework within which such breaches might be addressed. Generally, under the ASIC Act, breaches could result in enforcement actions, including fines for individuals or corporations, public censure, or even more severe penalties if the breach is deemed to be of a serious nature. The maximum penalties for such breaches are not explicitly stated in this instrument but can be found within the broader provisions of the ASIC Act.