ASIC cancels registration of 374 SMSF auditors

Oksana Patron

31 January 2023

The Australian Securities and Investments Commission (ASIC) has cancelled the registration of 374 auditors of self-managed superannuation funds (SMSFs) as they failed to lodge their annual statements.

Based on data obtained from the Australian Taxation Office (ATO), the cancelled SMSF auditors had not performed a significant number of SMSF audits in the past two to three years.

The regulator said that as part of its current compliance program, it communicated to over 1,400 SMSF auditors that they had outstanding annual statements and most of these auditors subsequently lodged their statements.

Following this, those SMSF auditors still with outstanding annual statements were advised on 3 August 2022 that ASIC was considering cancelling their registration, with notice of cancellation sent to these auditors on 23 January 2023, following their continued non-compliance.

“SMSF auditors play a fundamental role in promoting confidence and instilling trust in the SMSF sector, which holds more than $865 billion in assets in over 600,000 funds. It is crucial that SMSF auditors comply with their regulatory obligations. ASIC will continue to take action where they do not meet these obligations,” ASIC Commissioner Danielle Press said.

From 1 July 2013, the Superannuation Industry (Supervision) Act 1993 (SIS Act) required all auditors of SMSFs to be registered with ASIC. This was to ensure that all SMSF auditors meet at least base standards of competency and expertise.