KPMG’s Australian chief, Andrew Yates, will step down immediately, after taking responsibility for the consultancy firm’s failure to properly respond to whistleblower allegations around the misuse of client information.

The firm’s chief executive made the announcement on Friday morning, saying in a statement: “I have been committed to a speak-up culture in our firm”.

“It is clear that in this case we have let ourselves down and I take accountability,” said Yates, who was appointed to the top role at KPMG Australia in 2021.

The head of KPMG’s audit and assurance division, Julian McPherson, will also step down from his role and will leave the company “after an orderly transition of his client responsibilities”.

The firm said it was continuing to investigate “a matter relating to client documents being inappropriately shared internally,” and recognised its internal reviews had fallen short.

“KPMG Australia confirms its treatment of a whistleblower and investigation into their allegations fell short of the firm’s expectations, those of the whistleblower and the broader community,” it said in a statement.

“The initial internal investigation, that did not substantiate the allegations raised by the whistleblower, was in hindsight not conducted with the necessary rigour required.”

The Australian Securities and Investments Commission on Friday morning told a parliamentary committee that it was conducting “a preliminary investigation into the allegations about the conduct of a number of the registered company auditors at the firm KPMG”.

More details soon …