The SMSF Professionals’ Association of Australia (SPAA) is urging practitioners to register as soon as possible to ensure they do not miss out on auditing funds from the start-up date.
The Australian Securities and Investments Commission (ASIC) opened registration of SMSF auditors yesterday. From 1 July 2013, registration – which may be completed online – will be mandatory for anyone conducting an SMSF audit.
ASIC said sanctions may apply if an auditor accepts an audit engagement after the beginning of July without being registered.
In order to be registered, SMSF auditors must meet minimum education, experience and competency requirements.
Auditors who decide to get registered will need to complete at least one audit and will also need professional indemnity insurance.
If fewer than 20 audits have been signed off in the year before registration, completion of an examination is also required.
“It’s critical that auditors move quickly to register with ASIC if they have made a decision to remain part of this vibrant sector of the superannuation industry and [to] continue auditing SMSFs,” SPAA chief executive Andrea Slattery said in a statement.
Ms Slattery also highlighted the importance of having professional indemnity insurance that meets the requirements stipulated in the Superannuation Industry (Supervision) legislation.
ASIC has recommended applicants lodge by the end of April to provide ASIC adequate time to process their application.
ASIC senior executive Ged Fitzpatrick said the practitioner register would improve the quality of SMSF audits.
“The ability to identify registered SMSF auditors is critical in underpinning confidence for SMSF trustees,” Mr Fitzpatrick said in a statement.
ASIC said existing approved SMSF auditors can apply for registration under transitional arrangements until the end of June, which may exempt them from some registration requirements.
Under such arrangements, registered company auditors are not required to complete 300 hours of work auditing SMSFs or undertake a competency exam, ASIC added.
