KPMG still claims privilege over 74 documents

In correspondence with the Parliamentary Joint Committee on Corporations and Financial Services, ASIC chair Sarah Court said 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, of which KPMG has claimed LPP over 68, as well as engagement materials comprising six documents.

In the correspondence, the Court said KPMG will produce the remaining material under a proposed voluntary disclosure agreement (VDA).

A VDA allows a party that wishes to maintain LPP to agree to voluntarily disclose the material to ASIC 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 and 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, and that it will consider whether to request the relevant withheld material as its investigations progress.

In response to a compulsory notice, KPMG produced several LPP documents to ASIC under a VDA in June 2026. These include:

• Materials related to KPMG’s internal investigative work between November and December 2024.
• Reports by Ashurst dated 24 February and 19 August 2025 with underlying material.
• Reports by Allens dated 17 June 2026 and 12 December 2025.
• KPMG’s responses to questions on notice and underlying material.

In addition, KPMG has also produced two whistleblower advices, 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 and provided an update on its investigation and surveillance activities into 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. It said the inquiry is in the early stages and that it is ongoing. Court said ASIC would update the committee once its findings are closer to finalisation.

KPMG Australia says it’s open to sending documents

KPMG chief executive John Sams confirmed in his letter to the committee that it has provided or will shortly provide relevant legal advice to the relevant regulators and professional bodies, including ASIC, CA ANZ, and the 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.

19 CA ANZ members subject to investigation

A CA ANZ spokesperson told Accounting Times that 19 of its members are the subject of a complaint or investigation relating to the KPMG matter.

“As these investigations remain active, we are not in a position to comment further, and it is important that the conduct process and related regulatory investigations are allowed to run their course to ensure procedural fairness for all parties involved,” the spokesperson said.

Members under investigation include former KPMG partners Eileen Hoggett and Paul Rogers, whose practising certificates were cancelled and who were banned from practising as a principal at any firm for a specified period following the CA ANZ disciplinary tribunal undertaking.

The spokesperson said Eileen Hoggett and Paul Rogers are presently adjourned following orders accepting undertakings “to allow higher order regulators to complete their investigations”.

In her correspondence with the PJC, CA ANZ deputy conduct leader AU for the Professional Conduct Committee, Angela Christopher, said the accounting body had requested copies of the letters of instruction to Ashurst and Allens and all documents referred to in the schedules to each of the Allens’ reports dated 12 December 2025, 13 June 2026, and 13 August 2026.

The CA ANZ spokesperson confirmed to Accounting Times that it has received most of the documents requested from KPMG for the Professional Conduct Committee’s ongoing investigations.

They added that discussions are “continuing regarding a small number of documents subject to claims of privilege”.