The revelations overshadowed the business of the standing committee, which was intending to dissect the regulator’s annual report before Mr Shipton alerted them to the issues with his remuneration and that of deputy chair Daniel Crennan.
“I have advised the Treasurer this afternoon that, in the circumstances, it is appropriate to stand aside pending the outcome of the review,” Mr Shipton told the committee.
“What matters is that I act with integrity and honour and that requires that I do nothing to hamper ASIC’s ability to carry on its important work ensuring a fair, strong and efficient financial system for all Australians.”
ASIC has indicated that it will co-operate with a review by Treasury and the Australian National Audit Office. Members of ASIC also indicated that the matter was brought to the attention of Treasury on 15 September.
“We agree that with respect to the payments and the dealing with of earlier concerns raised by the ANAO in last year’s financial statement review, that we have not dealt with this quickly enough, that there are failings of ASIC here, and we’re not denying that,” said deputy chair Karen Chester.
“We’ve acknowledged that, we’ve accepted, and we’re now focused on supporting the independent review.”
Between 2018 and 2020, ASIC made regular accommodation payments of $750 per week on behalf of Mr Crennan following his relocation from Melbourne to Sydney, resulting in him exceeding his total remuneration package. Mr Crennan has indicated that he will repay the amount as a debt due to the Commonwealth.
Mr Shipton’s payment stemmed from tax advice provided by auditor KPMG around his relocation from the US. ASIC approved three $25,000 procurements – along with smaller sums for initial advice – but was invoiced some $118,557 due to the “complexity of the tax affairs being managed”.
KMPG invoices also describe the rendering of “assistance in respect of resolution of Massachusetts state tax notices and penalties due to late filing of 2017 Massachusetts state tax return”. Committee chair Tim Wilson questioned whether it was the responsibility of the Australian taxpayer to foot the bill for late filing of tax returns in another country.
James says he acted with honesty and integrity: he just covered it up for a year, asked Frydenberg if he could investigate it himself (Age 27.10.20) and only paid the $200,000 back when the National auditor, concerned ASIC would do nothing, referred it directly to Treasury.
And what a coincidence: Crennan QC had his nose in the expenses trough too. Nothing culturally amiss there. The two top guys dragging tens of thousands a month out of the ASIC expenses junket.
Is this what the Chairman of ASIC regards as acting with honesty and integrity?
Can’t wait for ASIC’s next press release on ethics and propriety.
Apparently Shipton bases himself in Hong Kong and travels to and from Australia. If so who is paying for the travel costs?
The jingle – ” we are al in this together is representative of the actors and the authorities.” ” FISH start rotting at the head.” make of this what you will.
This wreaks of double standards – may they both get what they deserve and it is reflective of what an adviser would be subjected to for similar fraudulent behaviour!!
Perhaps all ASIC staff should sit a FASEA exam and complete a few Ethics classes.
Shame Shipton Shame… only thing you can do is have ASIC investigate and destroy your life.
Time to move on Mr. Shipton… you were presented with a conflict, and you went to the favor of you.
The offer of the I’ll pay it back doesn’t cut it, otherwise you will be setting a precedent for those you find guilty of a similar misappropriation of funds to offer the same without penalty.
So let me get this straight/// Sir James rips off his office for tens of thousands and says sorry, and says he will pay it back… so now all is good.
Sorry Sir James… there is a conflict of duty here, as as as the Best Interest Duty… only one outcome for you Sir James… you must be charged by ASIC and removed from the Financial Services Sector, we do not want people like you who are compromised and conflicted adjudicating on others. Look forward to seeing your charges in the media as you do with advisers. What a hypocrite!!
Following on from ASIC’s treatment of advisers based on the very small majority of bad apples, it is clear that ever single employee at ASIC now needs to be fully audited for all activity over the past 10 years.
Totally agree! Not only do I enjoy your analogy to how they treat us, but also in reality it would be very interesting to see what other dirty secrets and conflicts or under the table payments may have been done.
“Late filing his Massachusetts income tax return” – that is not very good behaviour!
Great , and his incompetent organisation can take the new cfd limits with him , there is nothing they won’t do to help their big mates in Australia.
Here’s a thought for the auditor-general: “Why not litigate?”
Agree
If this was a small adviser they would be hounded, barred, publicly shamed and possibly jailed. Lets hope we see the same standards we have come to expect from ASIC applied??
If he was an adviser he would already be out on his ear with his licensee under investigation.
And here an old risky trying to protect poor families with much needed insurances has to go through all these exams and fa-rses when the chief regulator is rotting the system…
Oh dear. Bit of a hoot for the end of the week.
pmsl
This is awkward
Was that conflicted $$$$s under FASEA code
That is not very ethical. Maybe Mr Shipton should sit the FASEA exam…
So that is where the outrageous fees we Advisers are charged, go!!
The hunters have now become the hunted!
Hmm, wonder how many standards in the code of ethics he breached. He is lucky that his job doesnt require him to be ethical.
Remuneration is meant to be ” fair and reasonable and represent value for money” is it not ?
Gosh.
ASIC’s big Wigs, how about some FDS / Optin requirements apply to you.
Clearly show all your Fees, charges, wages, relocation cost, housing and tax advice costs.
Seems what’s good for Advisers should be good for ASIC execs.
[b]Do As I Say, Not Do As I Do, hey ASIC. [/b][b][/b]
What an absolute RORT !!!!
Snouts in the trough whilst they also STRANGLE TO DEATH FINANCIAL ADVISERS with soooooo many BS REGS and costs.
They can ruin a business for not handing out a useless FSG but they can’t even work out their own salaries. Resign immediately.
This is gold.
The great irony is that Shipton seems much fairer and more honest than his dodgy predecessor, who instilled a culture of adviser bias and persecution at ASIC.
Ohh my…. 10 year look back on everything they have done?
Wow. Here we go. I have the popcorn on