UPDATE 26/10 - ASIC deputy chair Daniel Crennan QC has announced he will retire from his position in July 2021.

ORIGINAL 23/10 - ASIC chair James Shipton has stepped aside pending outcome of investigation into a massive tax advice bill.

It was revealed this week that the finance regulator ASIC paid more than $118,000 for Mr Shipton to receive personal tax advice.

He received the advice after relocating to Australia from the United States.

The spending was uncovered by the Australian National Audit Office (ANAO).

Mr Shipton says ASIC accepts all the ANAO’s findings and that he has agreed to pay the money back.

The ANAO also questioned a $70,000 housing cost payment made to ASIC's deputy chair Dan Crennan.

Mr Shipton has issued a statement saying he will stand aside pending the outcome of the investigation.

“Whilst I believe that I have acted properly and appropriately in this matter, I hold myself to the highest possible standard,” he said.

Mr Crennan says he will repay the money.

“The accommodation payments for deputy chair Crennan were ceased following his request and he offered and agreed to repay the accommodation payments made to him as a debt due to the Commonwealth,” Mr Shipton said.

“ASIC acknowledges that action in relation to this matter, first raised in the ANAO's 2018-19 Closing Report, should have taken place more promptly.”

The Federal Government has commissioned an independent review into both matters.

ASIC's deputy chair Karen Chester has become acting chair while the review takes place.