19 July 2023

ASIC's Vigilance on SMSF Auditors with Outstanding Annual Statements
 

In the dynamic landscape of self-managed superannuation funds (SMSFs), ensuring regulatory compliance and maintaining the trust of investors are paramount. The Australian Securities and Investments Commission (ASIC) has been actively monitoring the conduct of SMSF auditors to uphold the integrity of the SMSF sector. In its latest efforts, ASIC has cancelled the registration of 29 auditors of SMSFs who failed to lodge their annual statements. This measure comes in addition to the cancellation of 374 SMSF auditors in January 2023 and 10 auditors in May 2022 as part of ASIC's ongoing compliance program.
 

ASIC Commissioner Danielle Press reiterated the importance of SMSF auditors' role in promoting confidence within the sector. With their pivotal position, compliance with regulatory obligations is not merely a recommendation but an essential aspect of their responsibilities. To maintain the reputation of SMSFs as a reliable and secure investment avenue, auditors must fulfil their duties diligently.
 

Notices of cancellation were sent to the auditors in question on 22 May 2023, following prior communications on 3 August 2022 and 21 March 2023. ASIC had alerted them to the outstanding annual statements and the potential cancellation of their registration. While some of the auditors were proactive in lodging their annual statements after receiving notifications, others failed to meet their obligations.
 

One possible explanation for the failure to lodge annual statements is the lack of robust administrative practices, including the failure to keep contact details up to date on the SMSF auditor register. It is essential for SMSF auditors to maintain accurate and current contact information to ensure efficient communication from regulatory authorities like ASIC.

The gravity of the situation highlights the need for SMSF auditors to take their obligations seriously. Failing to lodge annual statements and keeping contact details updated could lead to the cancellation of their registration, which would significantly impact their ability to operate in the sector.
 

For the benefit of SMSF auditors and the investors they serve, ASIC encourages compliance with annual statement lodgements and the maintenance of contact details. By completing and lodging annual statements as required, auditors demonstrate their commitment to transparency and accountability, reinforcing the trust placed in them by SMSF investors.
 

Auditors seeking to fulfil their regulatory responsibilities can use the ASIC Regulatory Portal for smooth and efficient lodgements of annual statements and updates to contact details. The portal serves as a valuable resource, streamlining the process and ensuring compliance in an accessible manner.
 

ASIC's vigilant oversight of SMSF auditors underscores its dedication to upholding the highest standards within the financial services industry. The measures taken to cancel registrations serve as a clear message that non-compliance will not be tolerated.
 

In conclusion, Superannuation Audit Services play a crucial role in maintaining the credibility and confidence of SMSFs as a secure investment vehicle. To safeguard the interests of investors, ASIC remains resolute in its efforts to ensure that SMSF auditors fulfil their regulatory obligations. By adhering to compliance requirements, auditors can contribute to a robust and trustworthy SMSF sector, fostering an environment of growth and financial security for all stakeholders involved.
 

Reference ASIC media release 6 June 2023