What You Need to Know
The Australian Securities and Investments Commission (ASIC) has recently cancelled the registration of 374 auditors of self-managed superannuation funds (SMSFs) who failed to lodge their annual statements. This is a crucial step taken by ASIC to maintain trust and confidence in the SMSF sector, which holds more than $865 billion in assets in over 600,000 funds.
As per ASIC Commissioner Danielle Press, “SMSF auditors play a fundamental role in promoting confidence and instilling trust in the SMSF sector. It is crucial that SMSF auditors comply with their regulatory obligations. ASIC will continue to take action where they do not meet these obligations.”
Recently, ASIC communicated with over 1,400 SMSF auditors regarding their outstanding annual statements. Most of these auditors subsequently lodged their statements, but for those who didn’t, a notice of cancellation was sent on 23 January 2023. Based on data from the Australian Taxation Office, the cancelled SMSF auditors had not performed a significant number of SMSF audits in the past two to three years.
It is important for SMSF auditors to complete and lodge their annual statements on time to avoid cancellation of their registration. They should also keep their contact details updated. The lodgement of annual statements and updates to contact details can be done via the ASIC Regulatory Portal.
SMSF trustees and members can check the registration status of their auditor by searching ASIC’s SMSF Auditor Register. This will ensure that their investments are protected and they can have peace of mind knowing that their auditor is compliant with all regulatory obligations.
In conclusion, ASIC’s recent cancellation of the registration of 374 SMSF auditors is a step towards maintaining trust and confidence in the SMSF sector. It is crucial for SMSF auditors to comply with their regulatory obligations to avoid cancellation of their registration and for SMSF trustees and members to check the registration status of their auditor.