ASIC has today released updated regulatory guidance for the resignation, removal and replacement of auditors.
The updates to Regulatory Guide 26 Resignation, removal and replacement of auditors (RG 26) reflect expanded obligations applying in relation to registrable superannuation entities (RSEs) and retail corporate collective investment vehicles (retail CCIVs).
Among the revisions to RG 26 is guidance on how ASIC may exercise powers to give consent to the resignation or removal of an auditor of an RSE or retail CCIV, information required for resignation and removal applications, and relevant effective dates.
These changes follow the implementation of reforms under the Treasury Laws Amendment (2022 Measures No. 4) Act 2023, which came into effect on 1 July 2023. The reforms extend the financial reporting and auditing obligations under Chapter 2M of the Corporations Act 2001 (Corporations Act) to most RSEs.
ASIC's revisions also include clarifications required since the original publication of RG 26 in June 2015, which include:
- relevant disclosure obligations and the effective date of the resignation and removal of auditors (as applicable) for public companies, registered schemes, and Australian financial services (AFS) licensees,
- ASIC's approach regarding the resignation and removal of auditors of public companies registered with the Australian Charities and Not-for-Profits Commission,
- circumstances which may result in a change of auditor, and
- reasonable timeframes for submitting auditor resignation, removal and replacement applications.
In addition to the revised RG 26, ASIC has provided further guidance in relevant information sheets for companies, registered schemes and credit licensee (INFO 62, 64, 65 and 136), and has released three new information sheets for RSEs, retail CCIVs and AFS licensees (INFO 288, 289 and 290).
