Australia's corporate regulator chairman will step down in the coming months, Treasurer Josh Frydenberg said on Friday, despite an independent review clearing him of any wrongdoing related to moving expenses during his relocation from the United States.
Australian Securities and Investments Commission (ASIC) Chairman James Shipton stood aside in October after a government auditor suspected he exceeded his maximum salary allocation because of the relocation payments.
"In the light of the outcomes of the review, Mr. Shipton will return to his role, but Mr. Shipton and I have agreed that it is in the best interests of ASIC that he will step down as Chairperson of ASIC in the coming months," Frydenberg said in a statement.
Frydenberg said the review set up by the treasury to examine the expense claims made no adverse findings though the panel recommended the treasury may seek legal advice on whether Shipton breached any codes of conduct.
ASIC Deputy Chair Daniel Crennan resigned in October after it was revealed he had received a A$70,000 ($53,536) rental allowance while relocating from Melbourne to Sydney when he took the job in 2018.
The treasury said it expects ASIC to implement the panel's recommendations on internal risk, management and governance arrangements as a priority.
"I am satisfied that there have been no instances of misconduct by Mr Shipton concerning his relocation arrangements, including ASIC’s payment for tax advice resulting from his relocation to Australia," Frydenberg said.
Shipton has repaid A$118,000 to the ASIC that he received to pay for tax advice related to his relocation from the U.S. in 2018.
He will resume his position on Feb. 1 and continue in the role until a replacement is finalised, which the treasury plans to finalise within the next three months.
($1 = 1.3075 Australian dollars)
(Reporting by Renju Jose; Editing by Jacqueline Wong and Christian Schmollinger)
