Australian Securities and Investments Commission (Financial Reporting Council – Member) Appointment (No. 3) 2022

Overview

The Australian Securities and Investments Commission (Financial Reporting Council – Member) Appointment (No. 3) 2022 instrument was enacted in 2022 by the Australian government to address the need for qualified expertise within the Financial Reporting Council (FRC). This instrument appoints Emma Herd as a part-time member of the FRC for a period of three years, reflecting the government's commitment to maintaining robust financial oversight and accountability. The appointment was made under the authority of the Australian Securities and Investments Commission Act 2001, with the Treasurer, Jim Chalmers, exercising his powers to fill a vacancy on the FRC. The policy objective behind this appointment is to ensure the FRC has the necessary skills and experience to effectively carry out its role in regulating financial reporting and auditing standards in Australia.

Scope and Application

The Australian Securities and Investments Commission (Financial Reporting Council – Member) Appointment (No. 3) 2022 instrument appoints Emma Herd as a part-time member of the Financial Reporting Council for a three-year term, commencing on the day after the instrument is registered on the Federal Register of Legislation. This legislative appointment is made under subsections 235A(1) and 235AA(6) of the Australian Securities and Investments Commission Act 2001, indicating its application to the governance and regulatory framework of the Australian financial services sector. The appointment applies to Ms Herd as an individual, impacting her role within the Financial Reporting Council, an entity responsible for overseeing the quality and integrity of financial reporting in Australia. The jurisdictional reach of this Act is at the Commonwealth level, thereby affecting entities and conduct within the national scope of Australia. No specific exclusions, exemptions, or thresholds are detailed in this instrument, though it is understood that the application and scope may be further defined through subordinate instruments or regulatory guidelines established by the Australian Securities and Investments Commission.

Key Provisions

The Australian Securities and Investments Commission (Financial Reporting Council – Member) Appointment (No. 3) 2022 instrument, under the authority vested in the Treasurer by 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. This appointment is on a part-time basis and will last for three years, starting the day after the instrument is registered on the Federal Register of Legislation. The appointment aims to contribute to the oversight and regulation of financial reporting within Australia, ensuring that the Financial Reporting Council has the necessary expertise and representation to fulfil its functions effectively. The obligations and requirements imposed by this Act on the parties involved are straightforward. Emma Herd, as the appointed member, must dedicate her expertise to the Financial Reporting Council's objectives, which include enhancing the quality and transparency of financial reporting and ensuring compliance with relevant standards. Her role will involve participating in the Council's meetings, contributing to its decision-making processes, and collaborating with other members to achieve the Council's strategic goals. Furthermore, as a member of the Financial Reporting Council, Emma Herd will be expected to adhere to the Council's code of conduct and any other relevant guidelines or policies. In terms of potential consequences for breach, the legislation itself does not explicitly detail specific offences, penalties, or consequences for non-compliance with the appointment terms. However, any failure by Emma Herd to fulfil her duties or to adhere to the Council's policies could lead to disciplinary action by the Financial Reporting Council, potentially including her removal from the position. Additionally, if there were broader legal implications arising from her actions or decisions as a Council member, these would be addressed under the general legal framework governing the Financial Reporting Council and related legislative provisions. The penalties for such actions would depend on the nature of the breach and the applicable laws at the time.