Australian Securities and Investments Commission (ASIC) chair, James Shipton, has agreed to step aside pending an investigation into exceeding limits set by the Remuneration Tribunal Determinations for relocation expenses.
“A note in the report identifies payments of certain relocation expenses incurred on my behalf (on my appointment and return to Australia from the US) and deputy chair [Daniel] Crennan (following an agreement that he move from Melbourne to Sydney),” Shipton said in a report tabled to Parliament.
“Following its audit of ASIC’s financial statements, the ANAO stated a belief that the total remuneration paid to both office holders may exceed the limits set within the relevant Remuneration Tribunal Determinations.
“ASIC has acknowledged the ANAO’s findings and accepted all relevant recommendations which include conducting an independent review of the issues raised in the ANAO report. We note the Treasurer’s announcement and will fully cooperate with that process.”
Shipton said he would voluntarily reimburse ASIC for taxation related expenses ASIC paid following his 2018 relocation from the United States.
“At all times during consideration of this matter I have been mindful of the need to avoid any conflict of interest,” Shipton said.
“I have recused myself from all relevant Commission deliberations. Where I have had to take any formal action in my role as ASIC’s Accountable Authority I have only done so on the recommendations of the other, non-recused, Commissioners. Deputy chair Crennan has taken the same approach.”
He had advised the Treasurer, Josh Frydenberg, this afternoon that it was appropriate to stand aside pending the outcome of the review.
“Whilst I believe that I have acted properly and appropriately in this matter, I hold myself to the highest possible standard,” Shipton said.
“What matters is that I act with integrity and honour. That means I need to act in the best interests of ASIC and its vital purpose to build a fair, honest and efficient financial system for all Australians.
“I only took this position to serve the Australian community and to work to improve the corporate and financial system that should also serve it. If I any anyway impede that purpose, the right thing for me to do is to step aside until such time that I can. ASIC’s work protecting the Australian community must come first. It is far too important to jeopardise.
“I look forward to cooperating with the inquiry and I look forward to my continued service to the Australian community.”
