The Australian government has unveiled plans to grant the Australian Securities and Investments Commission (ASIC) unprecedented powers to police and fine major accounting firms, with penalties reaching up to $200 million.
The proposal marks a significant escalation in regulatory oversight of the professional services sector, directly targeting the Big Four firms amid a deepening crisis of confidence.
The move comes as KPMG faces intensifying scrutiny, with the firm suffering further senior leadership departures.
The Reserve Bank of Australia has confirmed it is reviewing its professional relationship with KPMG Australia, signaling that the fallout from recent scandals is reaching the highest levels of the financial system.
This regulatory pressure underscores the severity of the credibility concerns surrounding the firm's audit and advisory practices.
The proposed reforms aim to address systemic weaknesses in the accounting industry by giving ASIC the authority to impose hefty financial penalties for misconduct.