ASIC has disqualified James Dermody of New South Wales from being an approved Self-Managed Superannuation Fund (SMSF) auditor.

ASIC determined that Mr Dermody is not a fit and proper person to act as an approved SMSF auditor because he signed independent auditor's reports and auditor independence declarations for two companies for the years ended 30 June 2013 and 2014 when he was not a registered company auditor under the Corporations Act 2001.

ASIC Commissioner John Price said, 'Auditors are important gatekeepers who play a crucial role in the SMSF sector. SMSF auditors must maintain high standards or ASIC will hold them to account.'

SMSF trustees and members can check whether their auditor is registered, or whether a person has been disqualified, by searching ASIC's SMSF auditor register at connectonline.asic.gov.au.

Background

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 at least meet the base standards of competency and expertise.

ASIC and the ATO work closely together as co-regulators of SMSF auditors. The ATO monitors SMSF auditor conduct and may refer matters to ASIC for possible action such as disqualification or suspension of their registration.