Australian Securities and Investments Commission (ASIC) Chairman David Knott will step down from the role at the end of the year, sending the media into a frenzy of speculation. The highly respected Mr Knott was just three years into a five-year contract. He is the third chief of a major federal regulator to step down this year, following Australian Prudential Regulation Authority CEO Graeme Thompson and Australian Competition and Consumer Commission Chairman Allan Fels.

Mr Knott has made it very clear that his reasons for stepping down have nothing to do with media reports trying to link him to the misdemeanours of a former business partner in the 1980s. Last week his lawyers sent letters to major media denying any wrongdoing and threatening action against any organisation which tried to say otherwise.

His reasons for retiring early are, in fact, less dramatic: Mr Knott has spent 10 years in the public sector, he is turning 55 and he wants to spend more time with his family.

“It is a sensible time for me to draw breath to review my family priorities and professional future,” he said. ‘The only decision that I have made at this stage is to retire from public sector employment at the end of the year. I do not intend to rush into any new commitments.”

During Mr Knott’s three-year leadership ASIC investigations led to 70 people being jailed, 40 company directors being removed from office and $1 billion in funds being recovered or ordered to be paid in compensation.

Federal Treasurer Peter Costello says the Federal Government will consult with the states and territories before choosing Mr Knott’s replacement.