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  • Reminder for SMSF auditors to check disqualified trustees register

    Approved self-managed super fund (SMSF) auditors are reminded they should be checking our disqualified trustees register when determining whether they need to report a contravention of section 126K of the Superannuation Industry (Supervision) Act 1993 (SISA), as part of their annual and ongoing reporting obligations.

    Under section 126K of the SISA a person commits an offence if they:

    • knowingly act as a trustee, or a director of a corporate trustee, of a SMSF while they are a disqualified person
    • are a trustee of a SMSF and do not tell us in writing immediately if they are or become a disqualified person.

    SMSF auditors are required to report contraventions of section 126K of the SISA to us via an Auditor/actuary Contravention Report (ACR). They also need to notify the trustee(s) of the contravention in writing and modify Part B of the SMSF Independent Auditor’s Report (compliance audit).

    Our records show some SMSF auditors have not lodged an ACR reporting a contravention of section 126K of the SISA, even though an individual is recorded on our disqualified trustees register.

    The disqualified trustees registerExternal Link, located on our website, should be checked by SMSF auditors to see if an individual has been disqualified by us. The register is updated quarterly and includes all individuals who have been disqualified by us since 2012 (when this information was first published electronically).

    We expect SMSF auditors to check this register each year during the annual audit for all new and continuing audit engagements.

    Auditors should also consider checking:

    • the Australian Financial Security Authority's National Personal Insolvency Index and 'Bankruptcy Register Search', for insolvency and bankruptcy information, and
    • the Australian Securities & Investments Commission's register of 'banned and disqualified persons', for details of persons who have been disqualified from involvement in the management of a corporation.

    See also:

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      Last modified: 15 Jul 2021QC 66389