ASIC boss steps aside over more than $118k in US relocation-related payments

The chair of Australia’s corporate cop has stepped aside after more than $118,000 in relocation-related expenses were found to be excessive.

Australian Securities and Investments Commission chair James Shipton has stepped aside pending a review.

The chair of Australia’s financial watchdog has stepped aside after being paid more than $118,000 in relocation-related expenses, which were deemed excessive.

Australian Securities and Investments Commission chair James Shipton made the announcement in a statement to the House of Representatives Standing Committee on Economics on Friday.

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 deputy chair Daniel 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.”

Mr Shipton said he had advised Mr Frydenberg he would 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,” he said.

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

“ASIC’s work protecting the Australian community must come first. It is far too important to jeopardise.”

ASIC chairman James Shipton has stepped aside after the Australian National Audit Office found his relocation payments were excessive.

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, which will be conducted by public administration consultant Dr Vivienne Thom through Treasury and is expected to be complete by the end of the year.

“Treasury will advise me on the findings of the review and any further course of action that may be appropriate,” Mr Frydenberg said.

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 asked on Friday if the government had known about the matter for more than a month, and ASIC second-in-charge Karen Chester confirmed Mr Frydenberg’s office had been aware since September 15.

“His statement implied that he’d only learned about it on 22 October,” Mr Leigh told NCA NewsWire.

“Indeed, a year ago, a media report stated that Daniel Crennan was paid more than the High Court Chief Justice, which should have raised a red flag for the Morison Government.”

According to the Remuneration Tribunal’s 2018 determination, the High Court Chief Justice’s base salary is $596,220.

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

“Yet they dragged their heels on looking into these issues, and they’re still providing little detail on the tax advice that’s at the centre of James Shipton standing aside,” Mr Leigh said.

“While I welcome Vivienne Thom taking charge of the inquiry, I’m baffled as to why the Treasurer has decided it needs to take more than two months.

“To have the corporate watchdog leaderless for two months in the midst of a pandemic and a recession is irresponsible, and shows the government’s failure to move swiftly on investigating wrongdoing.

“It’s exactly the kind of move you’d expect from a government that opposed the banking Royal Commission and continues to refuse to create a federal ICAC.”

Originally published as ASIC boss steps aside over more than $118k in US relocation-related payments