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Super trustees to see increased scrutiny of financial reports
Under new rules, superannuation trustees will now be required to lodge audited financial reports for funds with ASIC within three months of the end of the fund’s financial year.
The deadline for most funds will be 30 September, ASIC said, adding there will be fees incurred for late lodgement.
The audited financial reports must include the financial statements and notes, directors’ declaration, auditor’s report, and director’s report, which contains remuneration disclosure.
In a move to greater transparency, trustees will be required to make these fund financial reports publicly available on the fund website.
“Signing off on financial reports is one of the key duties of a director,” ASIC said in a statement.
“High quality financial reporting drives a culture of strong financial discipline, effective management and control of fund assets, and supports public confidence in superannuation.”
ASIC said that, in the event of significant deficiencies in disclosure or concerns about possible material misstatements identified in the financial report, the superannuation fund will be subjected to a financial reporting surveillance.
“Auditors will also be subject to increased scrutiny on the quality of their audit work in relation to superannuation funds,” it said.
The requirements come under the Treasury Laws Amendment (2022 Measures No. 4) Act 2023, which came into force on 1 July 2024. It extends the financial reporting and auditing obligations under Chapter 2M of the Corporations Act 2001 to most registrable superannuation entities.
The reports can be lodged on a new electronic transaction available in ASIC’s Regulatory Portal. Under this single lodgement point, trustees will be able to lodge compliance reports required under APRA’s Prudential Standard SPS 310 Audit and Related Matters with ASIC at the same time as their audited financial reports.
Once lodged, the audited financial reports of superannuation funds will be publicly available free of charge on ASIC’s website.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
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