Powered by
MOMENTUM
MEDIA
KPMG Australia has failed to produce over 70 documents to ASIC as it has continued to claim legal professional privilege, according to the ASIC chair.
In correspondence with the parliamentary joint committee (PJC) on corporations and financial services, Australian Securities and Investments Commission (ASIC) chair Sarah Court said that big four accounting firm KPMG has advised that it has not yet produced some material to the corporate regulator that it has to the PJC, as it maintains a claim of legal professional privilege (LPP).
This material includes independent director materials comprising 1,579 documents, out of which KPMG makes a claim of LPP over 68 of these documents, as well as engagement materials comprising six documents.
Court said in the correspondence that KPMG will produce the remaining material under a proposed voluntary disclosure agreement (VDA).
A VDA is where a party that wishes to maintain LPP may nevertheless agree to voluntarily disclose the material to ASIC, but on a confidential basis. This means that while ASIC can view the documents, it cannot use the contents for any public enforcement action.
The ASIC chair also said KPMG recently approached ASIC and offered to produce a report by Allens dated 10 August 2026, along with the underlying materials referred to in that report.
“ASIC and KPMG are currently negotiating a further VDA arrangement (proposed VDA) that would allow KPMG to produce these materials to ASIC, and any other further relevant material in relation to which KPMG asserts a claim for privilege but is prepared to produce to ASIC on a confidential basis,” Court said.
Furthermore, in response to ASIC’s compulsory notices, KPMG has informed ASIC that it maintains a claim of LPP over certain materials, and as such, has not produced them to ASIC on these grounds, Court said.
“Persons who are compelled to produce material to ASIC generally must provide all responsive material to ASIC other than materials that attract a valid claim of LPP. KPMG has itemised these documents in schedules produced to ASIC,” Court said.
She added that ASIC has not pressed KPMG to produce these itemised documents, adding that it will consider whether to make a request to KPMG to produce the relevant withheld material to ASIC as its investigations into these matters progress.
In response to a compulsory notice, KPMG produced several LPP documents to ASIC under a VDA in June 2026. These include:
In addition, KPMG has also produced two pieces of whistleblower advice, including one from Ashurst to KPMG dated 9 May 2025, and one from Allens dated 12 December 2025.
ASIC appeared before the PJC earlier this month, where it provided an update on its investigation and surveillance activities on alleged misconduct at KPMG, as well as EY, Deloitte, and PwC.
During the hearing, Court said the corporate regulator is reviewing 551 internal complaints received by the big four accounting firms relating to alleged misconduct since commencing surveillance in July 2023.
In addition, Court said ASIC has directly received 139 reports of alleged misconduct at the firms, which may include services outside audit functions.
In her correspondence with the committee, Court noted that the surveillance is examining internal complaints, including potential whistleblower complaints relating to the external audit services the firms provide. This includes whether the firms have received complaints relating to misconduct by registered company auditors, such as the misuse or sharing of confidential information.
However, ASIC did not disclose details of its surveillance, stating that it is at an early stage with ongoing inquiries being made. Court said ASIC would update the committee once its findings are closer to finalisation.
KPMG Australia says it’s open to sending documents
KPMG CEO John Sams confirmed in his letter to the committee that it has or will shortly provide relevant legal advice to the relevant regulators and professional bodies, including ASIC, CA ANZ, and the Tax Practitioners Board (TPB).
It has also responded or is in the process of responding to requests for relevant documents supporting the advice, including interview notes and other evidence, Sams said.
“In short, we are not withholding these documents,” Sams said.
“They will be made available for any regulatory or investigative process.”
Sams said KPMG has written to Lendlease, Telstra, Optus, Dexus, Westpac, and Macquarie Group offering to provide them with relevant information related to these matters and access where requested.
He also said the offer remains open for clients that have not yet requested documents.
