The Minister for Financial Services and Superannuation Bill Shorten has announced details of SMSF auditor registration.

UPDATE 18 July: Download exposure draft of legislation

Auditors will need to meet the following requirements to be registered as an SMSF auditor:
•hold a tertiary accounting qualification that includes an audit component or have successfully completed study in audit as part of a professional accounting body program;
•meet a fit and proper test;
•hold professional indemnity insurance;
•have 300 hours of SMSF audit experience in the three years prior to registration, subject to transitional arrangements; and
•pass a competency exam, subject to transitional arrangements.

Auditors will be able to apply for registration from 31 January 2013. All auditors must be registered with ASIC by 1 July 2013 to conduct SMSF audits after this time. Auditors required to sit the competency exam will be able to do so from 1 July 2013 and will have until 30 June 2014 to complete the exam and become fully registered.

The competency exam will be developed by the Australian Securities and Investments Commission (ASIC) in consultation with industry.

Transitional arrangements for SMSF auditor registration
Auditors who sign off 20 or more audits in the 12 month period prior to applying for registration will not be required to sit a competency exam to become registered as an SMSF auditor.

Additionally, existing SMSF auditors who have signed off an SMSF audit within a 12 month period will be exempt from the hours based experience requirement when registering.

Ongoing requirements for registered SMSF auditors
Registered auditors will be required to meet ongoing professional obligations including:
•undertaking a minimum amount of Continuing Professional Development (CPD) training every three years;
•complying with the Accounting Professional and Ethical Standards Board’s APES 110 – Code of Ethics for Professional Accountants.