ASIC deputy chairman and head of enforcement Daniel Crennan QC resigns

ASIC deputy chairman Daniel Crennan QC has resigned with immediate effect, leaving the conduct regulator’s senior leadership in disarray.

Daniel Crennan QC. Picture: Supplied

ASIC deputy chairman and head of enforcement Daniel Crennan QC has resigned with immediate effect, leaving the conduct regulator’s senior leadership in disarray.

Mr Crennan, who is embroiled in a row over $70,000 in relocation costs despite receiving advice from the watchdog that his expenses were “consistent with ASIC policy”, tendered his resignation to Treasurer Josh Frydenberg on Monday.

“I had been intending to retire from my position in July 2021,” the statement says.

“However, in the current circumstances, I have decided that it is in the best interests of ASIC for me to resign now.

“I have therefore tendered my resignation to the Treasurer with immediate effect.”

Mr 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,” the Treasurer said.

Mr Crennan’s abrupt departure leaves ASIC’s key enforcement agenda in a state of limbo, with deputy chair Karen Chester parachuted into the role of acting chair after James Shipton stepped aside last Friday pending the outcome of an independent review of his expenses.

The chairman told the House Economics Committee that he would immediately vacate his post while the Treasury review examined $118,000 paid to KPMG for tax advice and a further $78,000 in fringe benefits tax.

The review is expected to be completed before the end of the year.

ASIC also paid $70,000 in housing costs for Mr Crennan, or $750 a week rent in 2018 and 2019, after his relocation.

Both men have repaid the funds.

Mr Crennan says in his statement that he accepted an offer to become a Melbourne-based ASIC commissioner in 2018.

In October 2018, he agreed to a request from Mr Shipton 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,” Mr Crennan says.

“I was told the payment of this allowance was consistent with ASIC policy.

“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.”

After the audit of ASIC’s financial statements, the ANAO has recommended that an independent review be conducted into issues raised regarding relocation payments, including mine.

“That review will take some time,” Mr Crennan says.

“In order to ensure that ASIC’s important work is not disrupted, I will remain available to facilitate the orderly transfer of work to my successor.

“I wish the new Commissioner every future success as he or she continues the critical work that ASIC is assigned to undertake.

“I am grateful to the commonwealth government for the opportunity to serve the community as an ASIC Commissioner.

“I thank my fellow commissioners and wish them and the hard-working staff of ASIC every success in the important work they do on behalf of all Australians.”