ASIC chair James Shipton steps down over 2020 expense scandal | Alds

James Shipton is expected to resume the top role on Monday after taking leave in October following revelations by the federal Auditor-General that ASIC paid more than $118,000 in personal tax advice for the chairman.

Federal Treasurer Josh Frydenberg said he and Mr Shipton had agreed it would be in the best that he stepped down from the top role.

Mr Shipton has however been cleared of any wrongdoing and repaid $118,557 for the tax advice.

“In the light of the outcomes of the review, Mr Shipton will return to his role, but Mr Shipton and I have agreed that it is in the best interests of ASIC that he will step down as chairperson … in the coming months,” Mr Frydenberg said.

“The Treasury will immediately commence a search process for a new chairperson. I intend to finalise the appointment within the next three months.”

ASIC’s deputy chair Daniel Crennan was also roasted over financial mismanagement claims, with the same committee finding nearly $70,000 had been paid by the regulator in relocation expenses.

Mr Crennan resigned in October after the revelations. The review also found no wrongdoing on Mr Crennan’s part.

The review into ASIC’s governance has also recommended changes to Treasury’s oversight of managing executive remuneration and expenses.

Dr Vivienne Thom, the former inspector-general of Intelligence was appointed to head the review into ASIC and provided the report to Treasury in early January.

Dr Thom in her report recommended Treasury should seek legal advice to determine if the actions breached any applicable codes of conduct.

Mr Frydenberg said he was satisfied there had been no instances of misconduct after inspecting the report and additional legal advice.

“The government expects ASIC to implement as a priority, the recommendations made by Dr Thom concerning its internal risk management and governance arrangements and to report regularly to me on its progress,” he said.