Treasury Laws Amendment (2022 Measures No. 4) Act 2023 (29 of 2023)

Schedule 6   Financial reporting and auditing requirements for superannuation entities

Part 2   Amendments of other Acts

Superannuation Industry (Supervision) Act 1993

250   After section 130E

Insert:

130EA Court power of disqualification - audit firm or audit company

(1) On application by ASIC, the Federal Court of Australia may, by order:

(a) disqualify a firm from being or acting as an auditor of a registrable superannuation entity; or

(b) disqualify a company from being or acting as an auditor of a registrable superannuation entity;

for a period that the Court considers appropriate, if the Court is satisfied:

(c) as mentioned in subsection (2); and

(d) that the disqualification is justified.

Note: For offences relating to firms or companies disqualified under this section, see sections 131CA and 131CB.

(2) The Court may disqualify a firm or company, in accordance with subsection (1), if the Court is satisfied that:

(a) the firm or company has failed to put in place appropriate processes and systems to enable it to carry out or perform adequately and properly:

(i) its duties as an RSE audit firm or RSE audit company under this Act, the regulations or Chapter 2M of the Corporations Act 2001; or

(ii) any duties required by a law of the Commonwealth, a State or a Territory to be carried out or performed by an RSE audit firm or RSE audit company; or

(iii) any functions that an RSE audit firm or RSE audit company is entitled to perform in relation to this Act, the regulations, the prudential standards or the Financial Sector (Collection of Data) Act 2001; or

(b) the firm or company has failed to take reasonable steps to ensure that the lead auditor for an audit of a registrable superannuation entity conducted by the firm or company meets the relevant eligibility criteria set out in the prudential standards; or

(c) the firm or company has failed to take reasonable steps to ensure that the lead auditor for an audit of a registrable superannuation entity conducted by the firm or company is a fit and proper person to be a lead auditor.

(3) In deciding whether it is satisfied as mentioned in subsection (2), the Court may take into account:

(a) any matters specified in the regulations for the purposes of this paragraph; and

(b) any other matters the Court considers relevant.

(4) As soon as practicable after the Court:

(a) disqualifies a firm under this section; or

(b) disqualifies a company under this section;

ASIC must cause particulars of the disqualification to be published in the Gazette.

130EB Court power to revoke or vary a disqualification etc.

(1) A firm or company that is disqualified under section 130EA, or ASIC, may apply to the Federal Court of Australia for a variation or a revocation of an order made under section 130EA.

(2) At least 21 days before commencing the proceedings, written notice of the application must be lodged:

(a) if the firm or company that is disqualified makes the application - by the person with ASIC; or

(b) if ASIC makes the application - by ASIC with the firm or company that is disqualified.