ASIC proposes to allow class order [CO 12/1687] Competency Standards for Approved SMSF Auditors to expire (‘sunset’) on 1 April 2023.
The class order is made under s128Q(1) of the Superannuation Industry (Supervision) Act 1993 (SIS Act) and sets out competency standards for approved self-managed superannuation fund (SMSF) auditors. The competency standards require approved SMSF auditors to have knowledge of laws applying to those auditors.
Approved SMSF auditors must also comply with the auditing and assurance standards and independence requirements under s128F of the SIS Act.
ASIC has formed the view that the class order is no longer required and does not form a necessary and relevant part of the legislative framework. ASIC disqualifies and suspends SMSF auditors for not complying with auditing and independence standards as required by s128F of the SIS Act.
Making a submission
If you will be adversely affected by the expiry of [CO 12/1687] or you have feedback in relation to it, you should make a submission by 10 March 2023 to:
Financial Reporting and Audit Team
Australian Securities and Investments Commission
GPO Box 9827
Brisbane QLD 4001
email: SMSFauditor.submissions@asic.gov.au
You may choose to remain anonymous or use an alias when making a submission. However, if you do remain anonymous, we will not be able to contact you to discuss your submission if we need to.
Please note we will not treat your submission as confidential unless you specifically request that we treat the whole or part of it (such as any personal or financial information) as confidential.
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Background
Under the Legislation Act 2003, legislative instruments such as class orders expire or ‘sunset’ after 10 years unless action is taken to exempt or preserve them. This ensures that legislative instruments like class orders are kept up to date and only remain in force while they are fit for purpose, necessary and relevant.
In 2012, ASIC made [CO 12/1687] under subsection 128Q(1) of the SIS Act, which allows ASIC to make competency standards that must be complied with by all approved SMSF auditors under s128F. The competency standards were based on professional competency standards in existence at the time.
From 1 July 2013, the SIS Act required all auditors of SMSFs to be registered with ASIC. This was to ensure that all SMSF auditors meet at least base standards of competency and expertise.
Approved SMSF auditors must also comply with the auditing and assurance standards made by the Auditing and Assurance Standards Board and prescribed independence requirements, being APES 110 Code of ethics for professional accountants (including independence standards) issued by the Accounting Professional & Ethical Standards Board (APESB).