ASIC deputy chair Daniel Crennan quits

The deputy chair of Australia’s corporate regulator has quit just days after the chairman stepped aside – and it all relates to one issue.

The deputy chair of Australia’s corporate regular has quit.

Daniel Crennan resigned from the Australian Security and Investments Commission on Monday over a revelation about relocation costs.

“I had been intending to retire from my position in July 2021. However, in the current circumstances, I have decided it is in the best interests of ASIC for me to resign now,” Mr Crennan said in a statement.

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

It comes after ASIC chair James Shipton stepped aside on Friday after being paid more than $118,000 in relocation-related expenses, which were deemed excessive.

ASIC’s annual report shows it spent $118,557 in 2018 on taxation advice expenses related to Mr Shipton’s return to Australia from the US and $69,621 last year on Mr Crennan’s move from Melbourne to Sydney.

The Australian National Audit Office (ANAO) audited ASIC’s financial statements and stated a belief the total remuneration paid to both men may exceed the limits set within the relevant Remuneration Tribunal determinations.

There were also instances where commonwealth procurement rules were not followed, Treasurer Josh Frydenberg noted.

“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,” the corporate cop said in a statement.

“ASIC acknowledges the processes supporting the approval of these relocation expenses were inadequate and, given the high standard ASIC holds itself to, it is disappointed that such situation has occurred.

“ASIC anticipates the independent review will assist it to make appropriate changes to key policies and processes.”

ASIC chair James Shipton has stepped aside. Picture: Tracey Nearmy/Getty Images

Mr Shipton said while he believed he had acted appropriately, he advised Mr Frydenberg he would stand aside pending the outcome of the review.

“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,” he said.

“If I in anyway impede that purpose, the right thing for me to do is to step aside.”

ASIC said Mr Crennan asked for the accommodation payments to cease, and he offered and agreed to repay the cash.

Mr Shipton said he would also voluntarily reimburse the money and co-operate with the review to be conducted by public administration consultant Dr Vivienne Thom through Treasury. It is expected to be complete by the end of the year.

Mr Shipton said the matter was first raised in an ANAO 2018-19 report and action “should have taken place more promptly”.

Standing Committee on Economics deputy chair Andrew Leigh said on Friday a media report one year ago stated Mr Crennan was paid more than the High Court chief justice, “which should have raised a red flag for the Morison government”.

ASIC’s annual report shows Mr Shipton’s base salary was $811,654, while Mr Crennan received $634,785 in 2019-20.