Registrable superannuation entity financial reporting and audit

On 1 July 2023, Treasury Laws Amendment (2022 Measures No. 4) Act 2023 (2022 Measures No. 4 Act) came into force. The 2022 Measures No. 4 Act makes several changes to the financial reporting and audit obligations for registrable superannuation entities (RSEs).

Financial reporting obligations

The financial reporting and audit requirements of Chapter 2M of the Corporations Act 2001 (Corporations Act) now apply to RSEs, with the exception of exempt public sector superannuation schemes, self-managed superannuation funds, excluded approved deposit funds, small Australian Prudential Regulation Authority (APRA) funds, and RSEs that have been deregistered by APRA.

For financial years ending on or after 30 June 2024, superannuation trustees are required to:

prepare a director’s report, remuneration report, and audited financial report (collectively ‘audited financial report’) for each RSE in accordance with the Australian accounting and auditing standards, and Chapter 2M of the Corporations Act
lodge the audited financial report with ASIC within 3 months after the end of the financial year (e.g. audited financial reports for RSEs with financial years ending 30 June 2024 must be lodged with ASIC by 30 September 2024), and
make the audited financial report publicly available on the RSE’s website.

Audited financial reports for RSEs must be lodged through the ASIC Regulatory Portal using the trustee’s existing account. There is no need to create a separate portal account for each RSE. Trustees may lodge the compliance reports required under APRA Prudential Standard SPS 310 Audit and Related Matters with the audited financial reports in a single filing. Alternatively, these compliance reports may be lodged directly with APRA. Please contact APRA for more information about direct lodgement of compliance reports with APRA.

Audited financial reports (and compliance reports, if the trustee chooses to lodge them together with the audited financial reports) are public documents and will be made available on ASIC’s website.

Auditor obligations

All RSE auditors who were appointed under the Superannuation Industry (Supervision) Act 1993 (SIS Act) on 30 June 2023 were automatically appointed as the RSE auditor under the Corporations Act on 1 July 2023. Previously, RSE auditors were required to be individual appointments. However, since 1 July 2023, audit firms and approved audit companies have been able to be appointed as RSE auditors. Appointments continue until terminated – there is no longer any need for RSE auditors to be reappointed every year. As with other entities under Chapter 2M of the Corporations Act, ASIC’s consent is required for the removal or resignation of an RSE auditor. The auditor rotation requirements in Division 5 of Part 2M.4 of the Corporations Act apply to individuals who play a significant role in the audit of an RSE.

RSE auditors have obligations to report breaches related to RSE audits, as well as conflicts of interest. RSEs are now included in the types of entities about which auditors must prepare transparency reports (if certain conditions are met).

The 2022 Measures No. 4 Act also made various amendments to align offences and penalties for audit-related obligations in the SIS Act and the Corporations Act.

Implementation program

ASIC has been working closely with APRA to implement these reforms. Implementation activities include systems changes, and amendments to legislative instruments, guidance, information sheets and ASIC website content. APRA has also amended its superannuation prudential framework to align with the new requirements.

Filings with ASIC

All transactions for the filing of RSE notices, reports and applications can be accessed via the ASIC Regulatory Portal.

The following transactions are available on the Regulatory Portal:

Submit a copy of an RSE audited financial report
Apply for ASIC consent to resign as an auditor of a public company or RSE
Apply for ASIC consent to remove an RSE auditor
Notify ASIC of removal, resignation or cessation of an RSE auditor
Submit auditor breach report
Notify ASIC of auditor conflict of interest
Notify ASIC of extension of RSE auditor term
Notify ASIC of RSE financial records held overseas
Submit auditor transparency report
Apply for an exemption, declaration or order

ASIC will no longer be accepting lodgements using the interim process.

Registrable superannuation entities document register search

The documents register records and makes available for download copies of the following documents lodged with ASIC in relation to RSEs:

audited financial reports (and compliance reports, if the trustee chooses to lodge them together with the audited financial reports)
notices of removal, resignation or cessation of RSE auditors
notices of extension of RSE auditor term.

Inquiries

Should you have any questions about these reforms, please contact ASIC at RSEAudit@asic.gov.au.