The Australian Securities and Investments Commission (ASIC) has acted against nine self-managed superannuation fund (SMSF) auditors for conduct that did not meet required standards.
ASIC takes disciplinary action against nine SMSF auditors
The concerns included non-compliance with auditing and assurance standards, independence requirements, registration conditions, or being unfit to remain an SMSF auditor. ASIC took the disciplinary measures in the quarter ending 31 December 2023.
Among the actions taken, ASIC disqualified five auditors and imposed additional conditions on two. Two auditors had their registrations cancelled. Notably, of the nine auditors, five were referred to ASIC by the Australian Taxation Office.
ASIC deputy chair Sarah Court said:
SMSF auditors are responsible for auditing over 611,000 SMSFs with total estimated assets of almost $900 billion. In this privileged position, they play a key role in upholding the integrity and confidence of the SMSF sector. ASIC will continue to take action where conduct falls short.
In November, Ms Court defended ASIC’s enforcement record, challenging allegations that it lacked teeth. Emphasising its proactive approach, she said the claims were “ill-informed” and the regulator was one of the most active enforcement agencies in the country.
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ASIC’s enforcement priorities for 2024 include a continued focus on superannuation, insurance, and car financing practices. ASIC also aims to address issues such as poor distribution of financial products, misleading conduct in sustainable finance, high-cost credit, and predatory lending practices.
Additionally, in 2024, the regulator will address member services failures in the superannuation sector, misconduct leading to the systematic erosion of superannuation balances, insurance claims handling, and compliance with the reportable situation regime.
