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Jean Rey

Sep 02, 2022

Trustee "strike-off action in progress"

in SMSF Technical Forum

Hi SMSFAAA team,

I am auditing a fund and I noted that the trustee status on ASIC showed "strike-off action in progress". I questioned the accountant and he told me that he meant to deregister the bare trustee company, and lodged an application to deregister the trustee company by error.

Is there anything to consider here and what would you advise the trustees of the fund?

Thank you in advance.

Kind Regards

Jean Rey

1 answer0 replies

Comments (1)

THE AUDITORS INSTITUTE

Sep 04, 2022

Hi Jean

I came across the same situation recently. The trustee should be advised to take immediate action to rectify the issue.

The trustee of the Fund can apply to ASIC to cancel the deregistration. This can only be done within a limited time period so action should be taken immediately. The trustee company advises ASIC the deregistration application was done in error and the trustee company on behalf of the Fund still has assets.

If the trustee company is deregistered and a replacement trustee is not installed this would be a breach of section 17A of SIS re the definition of a SMSF.

If there is a breach of section 17A you would raise a qualified Part B audit report and lodge an audit contravention report.

Thanks

SMSF AAA