The announcement comes after Mr Shipton was cleared of any wrongdoing following an independent review into the $118,000 that ASIC had paid on his behalf for personal tax advice from KPMG.
The review by Dr Vivenne Thom also found no adverse findings against former deputy chair Daniel Crennan, who received close to $70,000 in relocation expenses.
Both Mr Frydenberg and Mr Shipton agreed, however, “that in the best interests of ASIC”, a new chair should be appointed.
Mr Shipton will resume in his role on Monday, after stepping aside late last year, and will leave once his successor has been named.
The Treasury has kicked off its search process, with an appointment to be finalised within three months.
“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, including ASIC’s payment for tax advice resulting from his relocation to Australia in early 2018, nor have there been any breaches of applicable codes of conduct,” Mr Frydenberg said.
“I thank Mr Shipton for his three years of service and dedication during his time as chairperson of ASIC.”
The independent review was initiated after the Australian National Audit Office (ANAO) alerted Mr Frydenberg to the expenses.
Both Mr Shipton and Mr Crennan have since repaid ASIC for the incurred expenses.
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Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.