ASIC Chair James Shipton Resigns over $118,000 Relocation Bill

According to insiders, Australian Securities and Investments Commission chairman James Shipton has resigned from the role while an investigation is undertaken into relocation payments made for himself and deputy chair Daniel Crennan.

Mr Shipton relocated to Australia in 2018 to take up the role as chair from the United States. As part of the negotiations about his remuneration in the role, ASIC agreed to pay $4050 for tax services to assist Mr Shipton in moving from the US to Australia.

But an audit of ASIC’s financial statements by the Australian National Audit Office (ANAO) found that total remuneration paid to both ASIC chair James Shipton and deputy chair Daniel Crennan QC may have exceeded limits set by Remuneration Tribunal Determinations. The regulator actually paid more than $118,000 for tax advice related to his relocation.

As a result, Mr Shipton will step aside pending an investigation and has said he will "voluntarily reimburse ASIC for taxation related expenses ASIC paid following my 2018 relocation from the United States".

And the accommodation payments for Deputy Chair Crennan were ceased following his request and he offered and agreed to repay the accommodation payments made to him as a debt.

Mr Shipton commented, 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".  

But he added, "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 any anyway impede that purpose, the right thing for me to do is to step aside until such time that I can. ASIC’s work protecting the Australian community must come first. It is far too important to jeopardise.”