Melbourne MP Josh Frydenberg is considered the likely replacement for Assistant Treasurer Arthur Sinodinos.

Senator Sinodinos stood down from the portfolio – which includes oversight of the financial services sector – in March while the NSW Independent Commission Against Corruption (ICAC) hears allegations related to Australian Water Holdings, where he was chairman.

He denies any wrongdoing and the Government says Finance Minister Mathias Cormann has moved into his roles only temporarily while the commission’s investigations continue.

However, Canberra insiders told insuranceNEWS.com.au last week there is unease about the time this is taking and a view that Senator Sinodinos will not return to the frontbench whatever the outcome.

His name was also raised last week at an ICAC hearing into the NSW Liberal Party’s fundraising methods, with allegations that Senator Sinodinos was told in 2010 of a plan to channel prohibited donors’ cash through a foundation.

Mr Frydenberg, who is currently Parliamentary Secretary to the Prime Minister, is tipped to move into financial services ahead of the other leading candidate, Steve Ciobo.

He became a barrister after joining law firm Mallesons Stephen Jaques, then worked for various Liberal Party ministers during the Howard government. In 2005 he joined Deutsche Bank, before he was elected to the seat of Kooyong in 2010. 

The Melbourne electorate is one of the Liberal Party’s blue-ribbon seats, having previously been held by former prime minister Robert Menzies and one-time foreign minister Andrew Peacock. It is considered a prize for the party’s rising stars.

The office of Treasurer Joe Hockey declined to comment on the speculation when contacted by insuranceNEWS.com.au.