Financial Reporting Council – Appointment of Part-time Acting Chair – 2021

Overview

The Financial Reporting Council – Appointment of Part-time Acting Chair – 2021 (F2021N00053) was enacted to facilitate the continuation of leadership within the Financial Reporting Council (FRC) through the appointment of part-time acting chairs during a transitional period. This notifiable instrument was issued under the Australian Securities and Investments Commission Act 2001 by Michael Sukkar, the Assistant Treasurer and Minister for Housing, Minister for Homelessness, and Social and Community Housing. The purpose of this legislation is to ensure the FRC maintains effective governance and oversight during a period of leadership change, thereby supporting the stability and integrity of financial reporting standards in Australia. The policy objective, as implied by the enactment, is to secure continuity and stability within the FRC during a critical time of transition. By appointing Lawrence (Lawrie) Tremaine for an additional three months from 1 April 2021, and William (Bill) Edge from 1 July 2021 up to and including 28 July 2022, the legislation aims to uphold the FRC's capacity to perform its regulatory functions without interruption. These appointments provide the necessary leadership to navigate the FRC through this period, ensuring that the FRC can continue to effectively oversee financial reporting standards and practices in Australia.

Scope and Application

The Australian Securities and Investments Commission Act 2021, as represented by the notifiable instrument F2021N00053, outlines the appointment of part-time acting chairs for the Financial Reporting Council (FRC). Specifically, Lawrence (Lawrie) Tremaine has been appointed for a three-month period commencing 1 April 2021, while William (Bill) Edge is appointed from 1 July 2021 up to and including 28 July 2022. These appointments are made under the authority of Michael Sukkar, the Assistant Treasurer and Minister for Housing, Minister for Homelessness, Social and Community Housing, acting pursuant to subsection 235A(3) of the Australian Securities and Investments Commission Act 2001. The appointments apply to the individuals named and their roles within the FRC, which is a body focused on ensuring transparency and integrity in financial reporting. The appointments are governed by Commonwealth law and pertain to the FRC's responsibilities and governance within Australia. These appointments remain in effect unless otherwise specified by subsequent instruments.

Key Provisions

The Australian Securities and Investments Commission Act 2021 (F2021N00053) provides for the appointment of part-time acting chairs for the Financial Reporting Council (FRC) under section 235A(3). Specifically, section 1(a) appoints Lawrence (Lawrie) Tremaine for a further period of three months starting from 1 April 2021. Section 1(b) appoints William (Bill) Edge from 1 July 2021 until 28 July 2022. These appointments are temporary and will remain in effect until further notice or a subsequent instrument is issued. The Act imposes certain obligations on the appointed individuals. As part-time acting chairs, Lawrie Tremaine and Bill Edge are expected to perform their duties with the same diligence and responsibility as a full-time chair. They must adhere to the standards and requirements set forth by the FRC, including participating in the formulation of financial reporting standards, overseeing the FRC’s activities, and ensuring compliance with relevant legislative frameworks. Both individuals must also maintain the independence and integrity expected of FRC leadership, avoiding any conflicts of interest that could compromise their ability to effectively govern. Breach of the obligations outlined in the Act could lead to serious consequences. While the Act does not explicitly detail specific offences or penalties for non-compliance, failure to adhere to the duties and responsibilities of the FRC chair could result in legal actions for misconduct or mismanagement. Additionally, if these appointments are found to be made in bad faith or with ulterior motives that contravene the intent of the Act, the individuals involved could face legal repercussions, including potential civil or criminal charges. Although the Act itself does not prescribe maximum penalties, any legal action taken would be governed by the broader legal principles and statutes applicable to such cases in Australia.