Australian Securities and Investments Commission (ASIC) Chairman James Shipton has resumed in the role today after he was cleared of misconduct over relocation-related expenses, but he will step down in coming months.

Mr Shipton last year repaid $118,557 that was provided by ASIC for tax advice after he moved from the US to Australia to become chairman in 2018.

Revelations about relocation expenses paid for Mr Shipton and Deputy Chairman Daniel Crennan sparked an independent review of ASIC governance conducted last year by Vivienne Thom.

“After considering Dr Thom’s report and supplementary legal advice provided to the Treasury concerning these matters, I am satisfied that there have been no instances of misconduct by Mr Shipton concerning his relocation arrangements,” Treasurer Josh Frydenberg said on Friday.

“In light of the outcomes of the review Mr Shipton will return to his role, but Mr Shipton and I have agreed that it is in the best interests of ASIC that he will step down as Chairperson of ASIC in the coming months.”

Treasury will immediately start the search for a new Chairman and Mr Frydenberg says he intends to finalise an appointment within the next three months.

Dr Thom also makes no adverse findings regarding Mr Crennan, who repaid $69,621 provided for accommodation. Mr Crennan, who was due to retire in July, stepped down early from his role in October.

The review makes a number of recommendations for ASIC to improve its risk, management and governance arrangements, while Mr Frydenberg says Treasury will act immediately on findings that it could improve its processes for managing appointments of statutory officers.