Australia’s corporate regulator to share Big Four surveillance findings after KPMG scandal

[MELBOURNE] Australia’s corporate regulator will release part of its findings from surveillance of the Big Four audit and consulting firms before the end of 2026 after the sector was rocked by a series of scandals. 

The Australian Securities and Investments Commission (Asic) launched the surveillance of the firms, which includes Deloitte, EY and PwC, after allegations surfaced earlier in 2026 that KPMG Australia had misused confidential client data to win new corporate clients. 

The monitoring has focused on “issues that have been raised in their internal complaints, including by whistleblowers,” Asic chair Sarah Court will say in a speech later on Tuesday (Oct 13), according to released excerpts.

“That surveillance is ongoing, and we intend to share some high-level findings before the end of the year,” she will say.

In the latest fallout from the long-running scandal, ANZ Group earlier in October dropped KPMG Australia as its external auditor, ending a 57-year relationship.

Macquarie in August reversed a decision to hire KPMG as its auditor, and it has also lost Insurance Australia Group and property giant Lendlease as clients. 

The regulator has also opened multiple lines of inquiry and formal investigations arising from the allegations as Asic intensifies its focus on the sector, Court sill say. 

“The relationship between a business and its auditor is one of immense trust – a business must open itself up and share some of its more important and sensitive information,” she will say. “The alleged behaviours have broken that trust.”

Court will highlight the restrictions facing Asic in its oversight function, given the regulatory framework “focuses on individual auditors and individual engagements and is, in our view, inadequate for regulating the large multi-disciplinary firms that play such an integral role in Australian markets”, she will say.

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A consultation by Treasury on potential reforms that include measures such as strengthening enforcement and disciplinary provisions would be welcomed by Asic, according to Court.

“We’ve been engaging regularly with Treasury on these matters and we’re looking forward to seeing the outcomes of this consultation,” she will say, according to the prepared remarks. BLOOMBERG