Companies Auditors Disciplinary Board (Member) Appointment (No. 3) 2022

Overview

The Companies Auditors Disciplinary Board (Member) Appointment (No. 3) 2022 was enacted by Michael Sukkar, the Assistant Treasurer and Minister for Housing and Minister for Homelessness, Social and Community Housing, under section 203 of the Australian Securities and Investments Commission Act 2001. The legislation appoints Kerrie Howard as a part-time business member of the Companies Auditors Disciplinary Board, effective from 4 March 2022 to 3 March 2025. This notifiable instrument addresses the need for skilled and experienced members in the disciplinary board, ensuring that the board can effectively carry out its functions in regulating company auditors. The policy objective, as indicated by the appointment, is to maintain and enhance the integrity and efficiency of the disciplinary processes within the auditing sector, thus contributing to the overall stability and trust in Australia’s financial markets.

Scope and Application

The F2022N00030 Notifiable Instrument pertains to the appointment of an individual to the Companies Auditors Disciplinary Board under the Australian Securities and Investments Commission Act 2001. This legislation applies to Kerrie Howard, who is appointed as a part-time business member of the Companies Auditors Disciplinary Board for the period from 4 March 2022 to 3 March 2025. The Act, administered by the Assistant Treasurer, Michael Sukkar, also the Minister for Housing and Minister for Homelessness, Social and Community Housing, ensures that the appointee meets the eligibility criteria outlined in the Act. The jurisdictional reach of this Act is national, as it operates under the federal framework established by the Australian Securities and Investments Commission Act 2001. The appointment process is conducted in accordance with the provisions of section 203 of the Act, which mandates that the appointee should be eligible as per subsection 203(2A).

Key Provisions

The main operative sections of the Notifiable Instrument F2022N00030 involve the appointment of Kerrie Howard as a business member of the Companies Auditors Disciplinary Board (C(A)DB) under the Australian Securities and Investments Commission Act 2001 (section 203). The appointment (paragraphs 1 and 2) specifies that Kerrie Howard is to serve in a part-time capacity from 4 March 2022 to 3 March 2025. This period is clearly defined to ensure that the role is temporary and that the Board can be periodically reviewed for suitability and performance. Under the legislation, the Board has specific obligations and responsibilities to oversee and regulate auditors of companies in Australia. The business member, in this case Kerrie Howard, is expected to contribute to the Board's work by bringing a practical perspective from the business community, ensuring that the regulatory environment is fair and effective while supporting economic growth and stability. The Board's primary duty is to handle complaints about the conduct of company auditors, assess the qualifications of auditors, and impose penalties where necessary. The Notifiable Instrument also details the eligibility criteria under subsection 203(2A) of the Australian Securities and Investments Commission Act 2001, which ensures that the appointee, Kerrie Howard, meets the necessary qualifications and standards required for such a role. This includes possessing relevant experience and expertise in the business or financial sector. The Minister for Housing, Michael Sukkar, has confirmed the eligibility of Kerrie Howard based on these criteria, ensuring that the appointment aligns with the legislative requirements. Failure to comply with the provisions of the Australian Securities and Investments Commission Act 2001 or to adhere to the terms of the appointment can lead to various consequences. These may include disciplinary action against the Board member, potential legal proceedings, and financial penalties. While the specific penalties are not detailed in the Notifiable Instrument, the broader Act outlines significant sanctions for non-compliance, which can extend to substantial fines and imprisonment for more severe breaches. The legislative framework is designed to maintain the integrity and effectiveness of the regulatory process for company auditors in Australia.