A SIC boss drops bomb shell

Shipton to stand down over expenses review

THE corporate regulator dropped a bombshell in a parliamentary inquiry on Friday, with ASIC chairman James Shipton saying he will step aside and repay moving expenses relating to his shift into the job.

Mr Shipton told the committee that he had offered to the Treasurer Josh Fry den berg to step aside pending an independent review into the expenses. ASIC’s most senior deputy chair will take on his role while the matter is investigated. The Treasurer is considering how to fill the role.

ASIC said it was working with Treasury on the scope of the review into his expenses, which the Australian National Audit Office (ANAO) indicated had exceeded guidelines.

Deputy chair Daniel Crennan’s expenses relating to his move had also exceeded guidelines, the committee heard.

“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,” Mr Shipton said. “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.” Mr Shipton said he had rec used himself from matters where the issue may have created a conflict of interest.

“I have advised the Treasurer ... that, in the circumstances, it is appropriate to stand aside pending the outcome of there view.

“Whilst I believe that I have acted properly and appropriately in this matter, I hold myself to the highest possible standard.” The ANAO’s findings were fully raised just two weeks ago and A SIC received a final management letter on Thursday, ASIC deputy chairman Karen Chester said.

Both men have voluntarily repaid the full amounts. Mr Crenn an has not stood aside.

Mr Frydenberg said the review would be undertaken by former inspector-general of intelligence and security, Vivienne Thom.