Australian Securities and Investments Commission (Financial Reporting Council – Member) Appointment (No. 1) 2025

Overview

The Australian Securities and Investments Commission (Financial Reporting Council – Member) Appointment (No. 1) 2025I, enacted by the Treasurer, Jim Chalmers, on 11 November 2025, appoints Emma Herd as a part-time member of the Financial Reporting Council for a term starting on 22 November 2025 and ending on 30 June 2026. This appointment was made under the authority granted by subsections 235A(1) and 235AA(6) of the Australian Securities and Investments Commission Act 2001. The primary purpose of this legislation is to address the need for skilled and knowledgeable individuals within the Financial Reporting Council, ensuring that the council can effectively carry out its responsibilities in overseeing financial reporting standards and practices in Australia. This appointment underscores the government's commitment to maintaining robust financial oversight and integrity within the financial sector.

Scope and Application

The Australian Securities and Investments Commission (Financial Reporting Council – Member) Appointment (No. 1) 2025I appoints Emma Herd as a part-time member of the Financial Reporting Council, effective from 22 November 2025 until 30 June 2026. This appointment is made under subsections 235A(1) and 235AA(6) of the Australian Securities and Investments Commission Act 2001 by Jim Chalmers, the Treasurer, and is intended to contribute to the oversight and regulation of financial reporting and auditing standards in Australia. This appointment is made pursuant to Commonwealth legislation and is effective across the entire nation, impacting entities and individuals involved in financial reporting and auditing within the jurisdiction of the Australian Securities and Investments Commission. The scope of this appointment extends to the Financial Reporting Council's activities, including but not limited to, ensuring the quality of financial reporting and the independence and competence of auditors.

Key Provisions

The legislation, Australian Securities and Investments Commission (Financial Reporting Council – Member) Appointment (No. 1) 2025I, under the authority of subsections 235A(1) and 235AA(6) of the Australian Securities and Investments Commission Act 2001, appoints Emma Herd as a member of the Financial Reporting Council on a part-time basis. This appointment is effective from 22 November 2025 until 30 June 2026. This notifiable instrument ensures the proper functioning of the Financial Reporting Council by filling a vacancy or providing additional expertise necessary for the council's operations during the specified period. The Act imposes specific obligations on Emma Herd as a member of the Financial Reporting Council. These include adhering to the council's charter and operational guidelines, participating in meetings and decision-making processes, and ensuring compliance with relevant legislative requirements. Emma Herd must also act in the public interest and maintain the integrity and independence of the council in all her duties. The role requires her to contribute to the council's objectives, which include overseeing financial reporting standards, promoting transparency, and protecting investor interests. Failure to comply with the obligations outlined in the Act can result in both civil and criminal consequences. Under the Australian Securities and Investments Commission Act 2001, breaches of the council’s duties can lead to disciplinary actions, including potential fines or disqualification from serving on the council in the future. Additionally, if Emma Herd’s actions are deemed to be in breach of her fiduciary duties or other legal obligations, she may face personal liability, including compensation for any losses incurred by the council or its stakeholders. The maximum penalties for such breaches are not explicitly stated in the notifiable instrument but can be severe, depending on the nature and severity of the breach.