ASIC ramps up enforcement against SMSF auditors with 64 actions in the past financial year

The Australian Securities and Investments Commission (ASIC) has taken administrative action against 36 approved self-managed super fund auditors in the first half of 2026, bringing its total enforcement actions for the financial year to 64 as the regulator intensifies its crackdown on gatekeepers overseeing more than $1 trillion in retirement savings.

The 64 actions represent a sharp year-on-year increase from the 48 enforcement actions ASIC took against SMSF auditors across the whole of FY25, signalling the regulator is expanding the pace and scope of its compliance push in a sector that covers more than 672,000 funds and 1.2 million members.

Between January and June this year, ASIC disqualified four auditors, suspended three, imposed additional conditions on eight and cancelled 21 registrations.

For the full financial year, the tally stands at eight disqualifications, three suspensions, 10 additional conditions imposed and 43 registrations cancelled.

The FY25 figures are comparatively modest with seven disqualifications, three suspensions, 14 additional conditions and 24 cancellations across the full 12 months. The near-doubling of cancellations, from 24 to 43, is the most pronounced shift.

ASIC says it took these actions for various breaches of the professional obligations of SMSF auditors, such as failing to maintain independence, non-compliance with auditing and assurance standards, non-compliance with continuing professional development requirements, failing to maintain practical experience, failing to lodge annual statements, and/or for not being a fit and proper person to remain registered as an approved SMSF auditor.

ASIC Commissioner Kate O'Rourke says SMSF auditors play "a fundamental role in promoting confidence and instilling trust" in the self-managed super sector.

"It is crucial that SMSF auditors comply with their regulatory obligations," she says.

"ASIC will continue to take action where they do not meet these obligations."

The enforcement drive comes against the backdrop of a sprawling SMSF sector that held $1.06 trillion in total assets as at the March quarter, according to Australian Taxation Office data.

The ATO's quarterly statistical report recorded 672,805 SMSFs with 1,239,977 members at that date, with total assets growing steadily as Australians continue to favour the self-directed retirement vehicle.

A key concern for ASIC has been auditors conducting prohibited in-house audits, where the auditor lacks the required independence from the fund they are reviewing.

A 2025 ATO review indicated up to 800 SMSF auditors may still be performing such audits, and ASIC flagged increased scrutiny on in-house audit breaches when it announced its first tranche of 28 actions in the opening half of FY26.

ASIC has the power to disqualify, suspend or cancel the registration of approved SMSF auditors, or impose additional conditions on their registration.

Disqualification is the most severe sanction, barring an individual from acting as an approved auditor entirely, while cancellation removes their registration and additional conditions can restrict the scope of their audit work.