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SLI 2012 No. 330 Regulations as made
This regulation amends the Superannuation Industry (Supervision) Regulations 1994 to provide details on the requirements being placed on auditors of self managed superannuation funds (SMSFs) as part of the registration regime commencing on 31 January 2013.
Administered by: Treasury
Made 06 Dec 2012
Registered 11 Dec 2012
Tabled HR 05 Feb 2013
Tabled Senate 05 Feb 2013
Date of repeal 01 Feb 2013
Repealed by Division 1 of Part 5A of the Legislative Instruments Act 2003

Commonwealth Coat of Arms

Superannuation Industry (Supervision) Amendment Regulation 2012 (No. 6)1

Select Legislative Instrument 2012 No. 330

I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulation under the Superannuation Industry (Supervision) Act 1993.

Dated 6 December 2012

QUENTIN BRYCE

Governor-General

By Her Excellency’s Command

WILLIAM RICHARD SHORTEN


1              Name of regulation

                This regulation is the Superannuation Industry (Supervision) Amendment Regulation 2012 (No. 6).

2              Commencement

                This regulation commences on 31 January 2013.

3              Amendment of Superannuation Industry (Supervision) Regulations 1994

                Schedule 1 amends the Superannuation Industry (Supervision) Regulations 1994.


Schedule 1        Amendments

(section 3)

 

[1]           Subregulation 1.03 (1)

insert

registered company auditor has the same meaning as in section 9 of the Corporations Act 2001.

[2]           Subregulation 1.04 (2)

substitute

Approved auditor

         (2)   For the purposes of paragraph (b) of the definition of approved auditor in subsection 10 (1) of the Act, the following class of persons is specified, namely individuals each of whom is:

                (a)    registered, or taken to be registered, as an auditor under Division 2 of Part 9.2 of the Corporations Act 2001; or

               (b)    the Auditor-General of the Commonwealth, a State or a Territory, or a delegate of the Auditor-General.

[3]           After Part 9

insert

Part 9A               Approved SMSF auditors

  

9A.01      Qualifications

         (1)   For subparagraph 128B (1) (a) (i) of the Act, each of the following subregulations sets out a qualification.

         (2)   A degree, diploma or certificate in accounting of not less than 3 years, which includes a course in audit, from either of the following bodies (a relevant body):

                (a)    a university mentioned in Part 1 of the table in regulation 9.2.02 of the Corporations Regulations 2001;

               (b)    the institution mentioned in Part 2 of the table in regulation 9.2.02 of the Corporations Regulations 2001.

         (3)   Both:

                (a)    a degree, diploma or certificate in accounting of not less than 3 years, which does not include a course in audit, from a relevant body; and

               (b)    satisfactory completion of a course in audit (a relevant course) mentioned in regulation 9A.02.

         (4)   Both:

                (a)    a degree, diploma or certificate in accounting of not less than 3 years, which does not include a course in audit, from a relevant body; and

               (b)    satisfactory completion of the self managed superannuation fund specialist auditor program conducted by the SMSF Professionals’ Association of Australia Limited.

         (5)   A qualification or combination of qualifications which the Regulator regards as equivalent to the degree, diploma or certificate mentioned in subregulation (2), (3) or (4).

Note   The applicant need only have a qualification mentioned in subregulation 9A.01 (2), (3), (4) or (5).

9A.02      Relevant courses

                For paragraph 9A.01 (3) (b), the relevant courses are:

                (a)    the following courses conducted by the Institute of Chartered Accountants in Australia:

                          (i)    Audit and Assurance in the CA Program;

                         (ii)    Financial Reporting and Assurance in the CA Program;

                        (iii)    Accounting 2 in the Professional Year Program;

                        (iv)    Audit and EDP Module in the Professional Year Program;

                         (v)    an audit module in the Professional Year Program conducted before 1986 that is equivalent to a course mentioned in subparagraph (i), (ii), (iii) or (iv); and

               (b)    the following courses in the CPA Program conducted by CPA Australia:

                          (i)    Assurance Services and Auditing;

                         (ii)    Advanced Audit and Assurance; and

                (c)    the following courses conducted by, or on behalf of, the Institute of Public Accountants:

                          (i)    Issues in Auditing and Professional Practice in the Graduate Certificate in Professional Accounting, offered by the University of New England in conjunction with the Institute of Public Accountants;

                         (ii)    Issues in Auditing and Professional Practice in the Degree of Master of Commerce (Professional Accounting), offered by the University of New England in conjunction with the Institute of Public Accountants.

9A.03      Practical experience

                For subparagraph 128B (1) (a) (ii) of the Act, each of the following is practical experience:

                (a)    at least 300 hours of work auditing self managed superannuation funds under the direction of an approved SMSF auditor in the 3 years immediately before applying to be an approved SMSF auditor;

               (b)    practical experience that the Regulator regards as equivalent to the practical experience mentioned in paragraph (a).

Note   The applicant need only have the practical experience mentioned in paragraph 9A.03 (a) or (b).

9A.04      Continuing professional development requirements

         (1)   For paragraph 128F (a) of the Act, the requirements in this regulation form the continuing professional development requirement.

         (2)   The approved SMSF auditor must undertake at least 120 hours of continuing professional development every 3 years.

         (3)   The development must:

                (a)    include 30 hours of development about superannuation at least 8 hours of which is development about auditing of self managed superannuation funds; and

               (b)    be development that could reasonably be expected to enhance an approved SMSF auditor’s technical skills or professional service delivery.

         (4)   The approved SMSF auditor must keep a written record of the development undertaken by the approved SMSF auditor for at least 3 years after the end of the financial year in which the development occurred.

9A.05      Professional indemnity requirements

         (1)   For paragraph 128F (b) of the Act, each of the following subregulations sets out a level of professional indemnity insurance.

         (2)   The level that is set under a limitation of liability scheme provided by a professional organisation mentioned in Schedule 1AAA.

         (3)   The level that:

                (a)    is adequate to ensure that the amount of coverage in relation to a single claim or in aggregate is at least $500,000; and

               (b)    is adequate because other terms of the policy will indemnify the auditor against civil liability that may arise from an act, error or omission in connection with audits of self managed superannuation funds.

Note   The applicant need only have the level of professional indemnity insurance mentioned in subregulation 9A.05 (2) or (3).

9A.06      Auditor independence requirements

                For paragraph 128F (d) of the Act, the auditor independence requirements produced by the Accounting Professional and Ethical Standards Board Limited and set out in the APES 110 Code of Ethics for Professional Accountants are prescribed for all approved SMSF auditors.

Note   At the commencement of this regulation, a copy of the APES 110 Code of Ethics for Professional Accountants was available at www.apesb.org.au.

9A.07      When fees must be paid

                For subsection 128L (3) of the Act, the table sets out when fees imposed under the Superannuation Auditor Registration Imposition Act 2012 are due and payable.

Item

A fee payable for ...

is due and payable ...

1

applying for registration as an approved SMSF auditor

when the application is submitted

2

undertaking a competency examination in accordance with section 128C of the Act

when applying to sit the examination

3

giving to the Regulator a statement under section 128G of the Act

when the statement is submitted

4

giving to the Regulator a statement under section 128G of the Act within 1 month after it fell due (in addition to the fee payable because of item 3)

when the statement is submitted

5

giving to the Regulator a statement under section 128G of the Act more than 1 month after it fell due (in addition to the fee payable because of item 3)

when the statement is submitted

6

giving to the Regulator particulars under section 128H of the Act within 1 month after they fell due

when the particulars are submitted

7

giving to the Regulator particulars under section 128H of the Act more than 1 month after they fell due

when the particulars are submitted

8

inspecting or searching a register that the Regulator keeps under Division 1A of the Act

when the request is made

[4]           After Part 13

insert

Part 14               Transitional arrangements

Division 14.1         Transitional arrangements arising out of Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012

14.01      Definition

                In this Part:

sign off, in relation to an audit (an SMSF audit) of a superannuation entity that is a self managed superannuation fund, means the action that occurs when an auditor gives a report of the kind mentioned in subsection 35C (1) of the Act to each trustee of the entity for subsection 35C (6) of the Act.

14.02      Applications before 1 July 2013 as an approved SMSF auditor

                For item 71 of the Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012, the table sets out the prescribed circumstances.

Item

Prescribed circumstance

Requirement of paragraph 128B (1) (a) of the Act taken to have been met

1

An approved auditor has signed off on an SMSF audit in the 12 months immediately before applying for registration as an approved SMSF auditor under section 128A of the Act

subparagraph 128B (1) (a) (ii)

2

An approved auditor has signed off on at least 20 SMSF audits in the 12 months immediately before applying for registration as an approved SMSF auditor under section 128A of the Act

subparagraph 128B (1) (a) (iii)

3

An approved auditor is a registered company auditor at the time of making an application under section 128A of the Act

subparagraphs 128B (1) (a) (ii) and (iii)

[5]           Schedule 1AAA, table, item 3

omit

National Institute of Accountants

insert

Institute of Public Accountants


Note

1.       All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See www.comlaw.gov.au.