ASIC has acted against 13 self-managed superannuation fund (SMSF) auditors in the first half of 2024 for breaches of auditing standards, independence rules, and professional development obligations.
ASIC stressed that SMSF auditors play a key role in ensuring the integrity of Australia’s $990 billion SMSF sector.
“ASIC will continue to take action where conduct is not up to standard,” the corporate regulator said.
Between January and June, ASIC disqualified seven SMSF auditors, imposed additional conditions on four, suspended one, and cancelled the registration of another.
Notable auditors like Tak Cheng and Md Nazrul Islam faced disqualification, while Ebony Maxwell’s disqualification was later converted to a three-year suspension after review.
Some auditors challenged ASIC’s decisions, but most appeals were dismissed by the Administrative Appeals Tribunal (AAT).
All auditors involved in the recent actions were referred to ASIC by the Australian Taxation Office (ATO), which monitors auditor conduct. ASIC and the ATO work together to oversee SMSF auditors, ensuring compliance and accountability.
Under the Superannuation Industry (Supervision) Act, ASIC has the power to disqualify, suspend, or impose conditions on auditors who fail to meet their duties.
In the 2023-2024 financial year, ASIC made 46 decisions regarding SMSF auditors, disqualifying 15, suspending one, imposing conditions on 24, and cancelling six registrations.
These actions highlight ASIC’s increasing oversight in the SMSF sector to maintain the integrity of audits and protect investors.
SMSF trustees are encouraged to check their auditor’s status on ASIC’s SMSF Auditor register to ensure compliance.
ASIC registers and regulates SMSF auditors under the Superannuation Industry (Supervision) Act of 1993.
Auditors found in breach of their duties can be disqualified, suspended, or have conditions placed on their registration. SMSF auditors have the right to appeal decisions, but most appeals are upheld by ASIC or the AAT.
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