Why is ASIC investigating KPMG Australia?

The Australian Securities and Investments Commission (ASIC) has launched a formal investigation due to serious concerns over the misuse of confidential client information. The action follows repeated failures within the firm to properly address whistleblower allegations regarding these data breaches.

Who is being targeted in the ASIC investigation into KPMG Australia?

The regulatory probe explicitly targets KPMG Australia as an entity, alongside three of its registered company auditors. However, ASIC has warned that the investigation is an "ever-moving feast," meaning more individual auditors could be pulled into the scope as new evidence is uncovered.

What regulatory actions has ASIC already taken against KPMG Australia?

ASIC has rapidly escalated its preliminary inquiry into a full-scale enforcement action and has already issued multiple compulsory notices to the big-four accounting firm. Senior-level interactions between the regulator and the firm have also intensified as ASIC tries to unearth the full extent of the misconduct.

What unique legal hurdles does ASIC face when investigating a firm like KPMG Australia?

Because KPMG Australia operates as a partnership rather than a traditional corporation, ASIC faces unique jurisdictional limits regarding its reach. The regulator is currently evaluating its internal "regulatory hooks" to determine exactly how it can legally enforce compliance and penalties against a partnership structure.

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ASIC launches formal investigation into KPMG Australia

Q: How did the whistleblower allegations impact KPMG Australia’s leadership?

The systemic failure to contain the whistleblower allegations over data misuse triggered the high-profile resignation of KPMG Australia Chief Executive Andrew Yates. His departure highlights the severe governance risks and reputational damage currently impacting the partnership.

Written by Heidi Cuthbert Published Jun. 5 2026Last Updated Jun. 5 2026

The Australian Securities and Investments Commission has upgraded its preliminary probe into KPMG Australia into a full-scale, formal investigation, targeting the corporate giant and three of its registered company auditors.

Appearing before a Senate committee hearing, ASIC Deputy Chair Sarah Court confirmed the rapid escalation, revealing that the regulator has already issued multiple compulsory notices to the big-four firm.

Court described the probe as an "ever-moving feast", warning that the number of individual auditors under scrutiny could grow as evidence is uncovered.

The enforcement action follows deep regulatory panic over the misuse of confidential client information, which last week triggered the high-profile resignation of KPMG Australia Chief Executive Andrew Yates after repeated failures to contain whistleblower allegations.

The investigation faces unique hurdles. Court noted that because KPMG operates as a partnership, ASIC is internally evaluating its "regulatory hooks" to navigate jurisdictional limits.

Meanwhile, senior-level interactions between the regulator and the firm have intensified.

ASIC CEO Scott Gregson confirmed the regulator holds eight active contracts with KPMG worth $3 million.

While ASIC has received interim assurances from KPMG regarding strict confidentiality and the exclusion of compromised personnel from public projects, Gregson indicated that a complete review of these contracts remains on the table as more information emerges.

ASIC emphasised its deep concern over the revelations, stating it is proactively engaging to unearth the full extent of the systemic misconduct.