The Superannuation Industry (Supervision) Amendment Regulation 2012 (No 6) and the Superannuation Auditor Registration Imposition Regulation 2012 were registered on Tue 11.12.2012, setting out the details for the auditor registration regime for self-managed super funds (SMSFs).
The regulations complement the approved SMSF auditor regime contained in the Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012.
The regulations amend the SIS Regulations to specify the qualifications, practical experience, continuing professional development (CPD), professional indemnity requirements and auditor independence requirements for approved SMSF auditors.
- The practical experience regulation will require at least 300 hours of work in auditing SMSFs in the 3 years immediately before applying for registration with ASIC. Under transitional provisions until 1 July 2013, it will not be necessary to meet the practical experience requirement where the auditor has signed off on an SMSF audit in the last 12 months.
- An approved SMSF auditor will also need to undertake at least 120 hours of CPD training every 3 years.
- Likewise, an auditor who has signed off on at least 20 SMSF audits in last 12 months will not be required to sit a competency exam. Note that the qualification requirements in the final regulation acknowledge the SMSF specialist auditor program conducted by SPAA.
- The level of professional indemnity (PI) insurance set under a limitation of liability scheme provided by a professional organisation will be deemed to be adequate. Otherwise, the level of PI insurance must be adequate to cover a single claim (or in aggregate) of at least $500,000 and be adequate in the opinion of ASIC. ASIC will also require the policy to cover the approved SMSF auditor, directors, partners and employees and contractors (if they do not have their own PI cover).
- The Superannuation Auditor Registration Imposition Regulation 2012 specifies the fees for approved SMSF auditors (eg a $100 application fee for registration with ASIC and $50 when lodging annual statements with ASIC).
DATE OF EFFECT: The regulations will commence on 31 January 2013.
[LTN 241, 12/12]