Mr D’Aloisio, who served as ASIC chairman from 2007 to 2011, says new appointments to the role should negotiate for an independent body to examine any allegations questioning their integrity or suggesting wrongdoing.The government, for its part, should reaffirm the independence of the role, and pledge that chairs will remain in office and continue to perform their full duties if any concerns are raised and found to have no basis.In an opinion piece published in The Australian, Mr D’Aloisio says that he is “uncomfortable” about the precedent set by Mr Shipton agreeing to step down after a successor is found, given that a review found no evidence of misbehaviour in a row over relocation expenses.“This precedent opens up the possibility that a government or a committee of the parliament with oversight of ASIC, or the media, in the context of intense interest group pressure, could question the chair’s approach, comb through expense claims or their personal background and find possible misdemeanours,” he says.“This possibility undermines the role and could eventually lead to ‘agreed’ separations even though ultimately there was no basis for the allegations made.”The issue, he says, was not whether the scenario is theoretical or practical.Rather, ASIC chairs now knew that, even if there were no grounds for removal, they could “find themselves in a situation where they need to step down”.Mr D’Aloisio praises Mr Shipton for the way he handled the matter, and congratulates Josh Frydenberg for dealing with the issue “sensitively and allowing Mr Shipton to resume his duties”.The circumstances, however, could be different in the future.
“Public pressure on the role of the chair through the media, through politicians or others who may or may not want action taken, can be extreme,” he says.“There have been countless examples of those over the years.“Clive Palmer is running a campaign right now.“The independence and protection of the chair by the government of the day is crucial for decision-making.“I do not believe anyone would seriously question that independence, even though one may not agree with an actual decision.”Mr Frydenberg announced on Friday that an investigation by former inspector-general of intelligence Vivienne Thom had cleared Mr Shipton and deputy chairman Daniel Crennan of any wrongdoing in relation to the payment of relocation expenses.Mr Shipton, who stood aside in October, will return to work on Monday but only remain in the job for about three months until a successor is found.The Treasurer said he and Mr Shipton had discussed the issues at length, and the ASIC chairman had served the watchdog well for three years.“But we believe it is time for a fresh start at ASIC, and a fresh start will begin with the search for a new chairman,” he said.Mr Shipton will recoup about $200,000 in foregone pay since he stepped down, but neither he nor Mr Crennan will be refunded for the relocation expenses they paid back to ASIC.The chairman repaid $118,557, while Mr Crennan, who resigned on October 26 last year, returned $69,621 in accommodation expenses.Mr Shipton will not be paid out the remaining two years of his five-year contract.Mr D’Aloisio says in his op-ed that future chairs of ASIC should have rights to natural justice in any future inquiry into wrongdoing, and the resulting report should be lodged with the government and parliament.This could be written into the terms of employment and have the force of a contract.The government should reaffirm the independence of the role, whether or not it made the appointment.Mr Shipton said on Friday that he was “pleased and unsurprised” that the review process had cleared him.“I look forward to returning to my role as ASIC chair and working with the government to reform the corporate regulator,” he said. “I am very appreciative of the confidence Treasurer Frydenberg and the government has placed in me to start the process of strengthening ASIC and transitioning to a new ASIC chair later this year.”
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