This week in review - our Blog

ASIC Deregisters 440 SMSF Auditors

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 Thank goodness! At last, some action.  ASIC has deregistered 440 SMSF auditors.

Compulsory SMSF registration was announced in 2012 to apply from July 1, 2013.  Persons wanting to continue to audit SMSF had to register with ASIC and meet certain requirements to become an approved SMSF auditor. 

There were undergraduate educational and experience requirements.  Also, applicants had to complete a competency exam.  Transitional rules applied.  If a SMSF auditor had signed off on more than 20 SMSF audits in the previous 12 months, they did not have to complete the competency exam.

There were 1421 auditors who had to sit and pass the competency exam prior to July 1, 2014.  This was extended and two attempts allowed.  There are around 7000 approved SMSF auditors, now we hear 440 of them have been deregistered, 6.3%. 

Of the 1421, 373 did not sit the exam and 67 did not pass.  So, 440 of the 1421 who had to sit, that is 31%, failed one way or another.  Even now ASIC is allowing these people to re-sit, if they want to reapply.

I wonder if anyone recalls the announcement that a person who audits an SMSF and is not registered with ASIC is liable to fines of up to $10,200 or 2 years imprisonment.  So one hopes they have stopped performing SMSF Audits.

 

Have you checked your SMSF Auditor to ensure they are registered, use the SMSF Auditor Register here

 

Should you need more information, please call us on 1300 551 261

© David Saul – Saul SMSF

David was among the first professionals to be accredited through SPAA as an SMSF Specialist Advisor™. He is also a Chartered Accountant and holds a Bachelor of Financial Administration from the University of New England, Armidale NSW.