ASIC deputy chair Daniel Crennan steps down, but defends $70,000 rent allowance
ASIC deputy chair Daniel Crennan QC has resigned as authorities probe $70,000 in rent assistance costs the corporate regulator paid him to relocate for work.
NSW
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A top corporate regulator has quit after revelations he received $70,000 in rent assistance from the public purse after moving to Sydney for work.
Australian Securities & Investments Commission deputy chair Daniel Crennan QC said he had been advised the $750 weekly rent allowance he was paid in 2018 and 2019 after relocating from Melbourne to Sydney was “consistent” with the regulator’s policy.
But Mr Crennan, who is head of enforcement at ASIC, tendered his resignation to federal Treasurer Josh Frydenberg with “immediate effect” on Monday and has repaid the money voluntarily.
“I had been intending to retire from my position in July 2021,” he said in a statement. “However, in the current circumstances, I have decided that it is in the best interests of ASIC for me to resign now.”
Mr Crennan’s sudden departure comes after ASIC chair James Shipton stepped aside last Friday pending the outcome of an independent review of his expenses.
Mr Shipton told a Senate estimates committee he would vacate his position while the Treasury review examined $118,000 paid to KPMG for tax advice and a further $78,000 in fringe benefits tax.
Mr Crennan said in October 2018 he agreed to a request from ASIC to move to Sydney because of the higher number of commissioners in Melbourne.
“ASIC agreed to pay me a relocation package, which included a rental allowance. I was told the payment of this allowance was consistent with ASIC policy,” he said.
“In September 2020 and early October 2020, I was told of external advice about — and the Australian National Audit Office’s present position concerning — the rental allowance being paid to me. I requested that ASIC cease paying me the rental allowance. I also offered and agreed to repay the rental allowance ASIC had paid to me.”
The ANAO has since recommended an independent review into relocation payments, including Mr Crennan’s.
TOP ASIC OFFICIAL QUITS AMID CONTROVERSY
ASIC deputy chair Daniel Crennan QC has resigned as authorities probe $70,000 in rent assistance costs the corporate regulator paid him to relocate for work.
Mr Crennan, who is head of enforcement at ASIC, said he had received advice the $750 rent allowance he was paid to move from Melbourne to Sydney was “consistent” with the regulator’s policy.
But he tendered his resignation to Treasurer Josh Frydenberg with “immediate effect” on Monday.
“I had been intending to retire from my position in July 2021,” he said in a statement. “However, in the current circumstances, I have decided that it is in the best interests of ASIC for me to resign now.”
Mr Crennan’s sudden departure comes after ASIC chair James Shipton stepped aside last Friday pending the outcome of an independent review of his expenses.
Mr Shipton told a senate estimates committee he would vacate his position while the Treasury review examined $118,000 paid to KPMG for tax advice and a further $78,000 in fringe benefits tax.
Mr Crennan said in October 2018 he agreed to a request from the ASIC Chair that he move to Sydney because of the higher number of Commissioners in Melbourne.
“ASIC agreed to pay me a relocation package, which included a rental allowance. I was told the payment of this allowance was consistent with ASIC policy,” he said.
“In September 2020 and early October 2020, I was told of external advice about, and the Australian National Audit Office’s (ANAO) present position concerning, the rental allowance being paid to me.
“I requested that ASIC cease paying me the rental allowance. I also offered and agreed to repay the rental allowance ASIC had paid to me.”
The ANAO has since recommended an independent review be conducted into issues raised regarding relocation payments, including Mr Crennan’s.
“That review will take some time,” he said.
Mr Crennan said he would “remain available to facilitate the orderly transfer of work” to his successor.
Treasurer Josh Frydenberg said the government had “received and accepted” the resignation of Mr Crennan.
“The government thanks Mr Crennan for his service and the important work he has undertaken during his time as Deputy Chair,” he said.
Originally published as ASIC deputy chair Daniel Crennan steps down, but defends $70,000 rent allowance