Seven SMSF auditors disqualified inside six months

Self-managed superannuation funds (SMSFs) remain one of the fastest-growing segments of the superannuation sector but the Australian Securities and Investments Commission (ASIC) has revealed the degree to which SMSF auditors remain a problem with seven disqualifications in just six months.

The regulator has revealed that in the first half of 2024 it took action against the registration of 13 SMSF auditors over issues ranging from independence requirements and breaches of auditing and assurance standards.

It noted that the action against the 13 SMSF auditors was on top of action against 15 SMSF auditors engaged in in-house which were the subject of regulatory action earlier this year.

ASIC said that between 1 January 2024 and 30 June 2024, it:

• disqualified seven SMSF auditors,
• suspended one SMSF auditor (after the original disqualification decision was varied upon their request for reconsideration),
• imposed additional conditions on four SMSF auditors, and
• cancelled the registration of one SMSF auditor.

ASIC said that all the SMSF auditors had been referred to it by the Australian Taxation Office (ATO).

It said that between 1 July 2023 and 30 June 2024, ASIC has made 46 decisions in relation to the registration of approved SMSF auditors:

• disqualified 15 SMSF auditors,
• imposed additional conditions on 24 SMSF auditors,
• suspended one SMSF auditor, and
• cancelled the registration of six SMSF auditors.

Detailing its action, ASIC said that Tak Cheng, Lin Chou, Kristian Convery, John Giannicos, Mark Gynther, John Hamilton, Md Nazrul Islam and Kylie Wee were disqualified from being SMSF auditors. All eight SMSF auditors requested ASIC reconsider its disqualification decision and the disqualifications in each case were confirmed, except Ms Wee’s application.

Ms Wee’s disqualification was in effect from 14 June 2024 until 27 August 2024. On 27 August 2024, Ms Wee’s disqualification was revoked and varied, upon her request for reconsideration, to a suspension of three years and three months and additional conditions were imposed on her registration for completion after the suspension period. Ms Wee’s suspension commenced on 19 September 2024. Mr Islam has applied to the Administrative Appeals Tribunal (AAT) for review of the confirmed disqualification decision and this review is ongoing. Mr Convery also applied to the AAT for a stay and review of the confirmed disqualification decision. Both of Mr Convery’s applications were dismissed by the AAT.

Mohammed Bhuiyan, Paul Judge, Yan Liu and Liushui Xie had additional conditions imposed on their SMSF auditor registration.