ASIC admits providing disciplinary evidence to accounting bodies

The Australian Securities and Investments Commission (ASIC) has confirmed that it has provided information to two of the major accounting groups so they can investigate or discipline their accountant members.

The regulator has acknowledged that the information it has provided to CPA Australia and Chartered Accountants ANZ has allowed it to deal with people who would otherwise fall outside of ASIC jurisdiction.

In a submission to the Parliamentary Joint Committee on Corporations and Financial Services, It said that it has “done this especially in instances where the information ASIC holds concerns an individual that does not have a registration that ASIC administers, but ASIC is otherwise concerned with the individual’s conduct as a member of one of the Professional Accounting Bodies”.

ASIC said it has the ability to release such information to the accounting groups under the ASIC Act and associated regulations.

It said that once the Professional Accounting Bodies have the ASIC Information, there are limitations on the use and disclosure of the information.

ASIC’s confirmation of the information it has provided to the accounting groups came amid other evidence to the Parliamentary Committee expressing concern at the manner in which the Privacy Act was limiting information flows between ASIC and the accounting groups.

However, ASIC said that it meets with CA-ANZ and CPA Australia on a regular basis and with the Institute of Practicing Accountants (IPA) on an as needs basis “to share information about emerging trends and issues and in the industry’.

“Historically some Professional Accounting Bodies have notified ASIC on an ad hoc basis of outcomes of their disciplinary matters that relate to their members that hold registrations with ASIC. We have engaged with CAANZ and CPA to formalise this notification process,” the regulator said.

“All registered company auditors are required to notify ASIC in their annual statement if they have been subject to disciplinary action by any of the Professional Accounting Bodies.

“ASIC has mechanisms in place to review and assess any information provided directly by the Professional Accounting Bodies and responses in auditors’ annual statements and uses this information in our work including registration and licensing, surveillance and enforcement action.”