The Institute of Chartered Accountants in Australia has called for industry-wide competency requirements to apply to all auditors of self-managed superannuation funds (SMSFs).
In its submission to the third phase of the Cooper review, the institute said it would be appropriate for industry-wide minimum standards to be determined by an independent body in consultation with industry.
“Members of the institute who audit SMSFs have been subject to minimum competency requirements for over two years. It is paramount now that the rest of the superannuation industry steps up to the level of competencies currently imposed on our members,” the institute’s head of superannuation Liz Westover said.
“We believe that our competency requirements could be adopted within the broader SMSF industry and we would welcome discussion on how this could be achieved.
“It is equally important that industry-wide competency requirements form part of superannuation legislation.”
Westover said professional organisations with existing and proven competency requirements should be able to determine their own additional requirements as long as the minimum industry requirements are met.
The institute’s submission supported the Cooper review panel’s statistical summary of SMSFs that debunked some common myths in the SMSF sector, particularly those surrounding the knowledge and financial literacy of SMSF trustees.
“SMSFs, as a wealth management tool, offer greater flexibility over the structure of funds, which is the most appropriate option for many Australians and their retirement savings,” Westover said.
