Financial Reporting Council — Appointment of Chair (2021 Appointment No. 1)

Overview

The Financial Reporting Council — Appointment of Chair (2021 Appointment No. 1) is a notifiable instrument made under the Australian Securities and Investments Commission Act 2001. Enacted in 2021, this instrument addresses the need for the timely and effective appointment of a Chair for the Financial Reporting Council, ensuring the continuity of oversight and governance in financial reporting standards. The Minister for Housing and Assistant Treasurer, Michael Sukkar, made these appointments pursuant to subsection 235A(3) of the Act. The policy objective is to maintain the integrity and stability of the financial reporting system by ensuring that the Financial Reporting Council has a duly appointed and effective leader to guide its operations. This legislative measure ensures that the Council can continue its critical function of overseeing financial reporting standards and practices without interruption.

Scope and Application

The Financial Reporting Council — Appointment of Chair (2021 Appointment No. 1) pertains specifically to the appointment of individuals as Chair of the Financial Reporting Council, a role integral to overseeing and regulating financial reporting standards in Australia. The Act applies directly to the individuals appointed, namely Lawrie Tremaine, whose term is for a period of three months starting from 1 January 2021, and William Edge, whose term runs from 1 April 2021 until 28 July 2022. The appointments are made under the Australian Securities and Investments Commission Act 2001, and the authority for these appointments stems from subsection 235A(3) of the Act. This legislative instrument does not explicitly detail the broader scope of the Act, but it can be inferred that it applies to entities within the financial sector that are subject to financial reporting standards and regulations overseen by the Financial Reporting Council. The appointments are made at the Commonwealth level, impacting national standards and practices across Australia. There are no stated exclusions, exemptions, or thresholds within this specific instrument, though the overarching Act may contain such provisions. The application and scope of the appointments can be further defined or extended through subsequent legislative instruments or regulations issued under the Australian Securities and Investments Commission Act 2001.

Key Provisions

The legislation F2021N00018, titled "Financial Reporting Council – Appointment of Chair (2021 Appointment No. 1)", establishes the appointments of Lawrie Tremaine and William Edge as the Chair of the Financial Reporting Council (FRC) under the Australian Securities and Investments Commission Act 2001 (Cth). Lawrie Tremaine is appointed for a period of three months starting from 1 January 2021 (section 1(a)), while William Edge is appointed from 1 April 2021 until 28 July 2022 (section 1(b)). These appointments are made under the authority of the Minister for Housing and Assistant Treasurer, Michael Sukkar, exercising the powers conferred by subsection 235A(3) of the ASIC Act. The Act imposes specific obligations on the appointed individuals to fulfil the role of Chair of the FRC. Lawrie Tremaine must assume the role on the specified date and continue in this capacity for the defined period. Similarly, William Edge is required to take up the position from the start of April 2021 and serve until the end of July 2022. Both appointees are expected to adhere to the duties and responsibilities outlined by the FRC and the ASIC Act, ensuring the proper functioning and oversight of financial reporting standards in Australia. The Act does not explicitly detail offences, penalties, or consequences for breach of the appointments or duties. However, under the broader ASIC Act, any failure to comply with the statutory requirements of the FRC or the duties of the Chair could potentially lead to disciplinary action, including the possibility of removal from office. Additionally, any misconduct or breaches of fiduciary duties by the appointees might be subject to civil or criminal penalties as prescribed by other relevant laws. In summary, the legislation ensures that the FRC is adequately chaired by experienced and qualified individuals, with clear terms of appointment. The appointees must fulfil their roles diligently to support the regulatory framework governing financial reporting in Australia. While specific penalties for breach are not detailed in this instrument, broader legal consequences under the ASIC Act could apply for any failures in duty or misconduct.