Corporate cop in major expansion of KPMG whistleblower probe

The corporate watchdog has revealed its probe into the whistleblower scandal at KPMG now includes companies controlled by the accounting and consulting giant, and potentially these companies’ directors.

The directors, who were on the boards of KPMG’s corporate entities since the initial complaint was made in 2024, include former NSW premier Mike Baird and senior KPMG executives who have resigned over the growing scandal .

The extent of the Australian Securities and Investments Commission’s (ASIC) investigations into KPMG were unclear until now, as it does not regulate partnerships, a business structure used by auditors.

Confirmation that ASIC is investigating companies controlled by KPMG – as well as some of its auditors – means the watchdog’s investigation will not be limited by the fact it does not regulate partnerships.

KPMG has been under siege after admitting that some of its staff accessed confidential information from corporate clients to win business – a serious breach of trust in the world of auditing that is essential to the integrity of financial markets.

In response to questions on notice from Greens senator Barbara Pocock, ASIC confirmed it is using its jurisdiction over corporate entities linked to the KPMG partnership, and their boards, for potential wrongdoing in relation to the whistleblower scandal.

It specifically mentioned an investigation into potential breaches of corporate law relating to the protection of whistleblowers without mentioning which KPMG corporate entities and boards are part of the probe.

“ASIC has commenced an investigation in relation to suspected contraventions of the protections of Part 9.4AAA of the Corporations Act,” it said in response to Pocock’s queries.

ASIC’s probe could include other issues, as well as possible breaches of whistleblower protections.

Separately, ASIC said it is currently assessing 24 KPMG entities “to determine whether it may be relevant to KPMG’s current investigations” and identified KPMG Australia Pty Ltd and KPMG Australia Services Pty Ltd as entities that may be “relevant” to its investigation. It is not known whether ASIC is investigating former or current directors.

“We will consider the conduct of directors of those entities where the circumstances of the relevant entity indicate that such consideration is required. At this stage, that assessment is ongoing,” ASIC said.

KPMG Australia Pty Ltd’s board has had 15 directors since the whistleblower made complaints in 2024, including executives who have been forced out by the scandal, including former boss Andrew Yates, former chairman Martin Sheppard and partner Kim Lawry.

Baird and fellow former independent director Patty Akopiantz are also listed as directors, according to documents lodged with ASIC.

This is separate to the partnership board where both Baird and Akopiantz were directors, alongside Jane Hemstritch who is expected to leave this year .