Wraps and Third Party Platforms and ASAE 3402

Simple Fund 360
1

We were recently advised by our SMSF auditor for a fund that has an investment in Netwealth (wrap) because Netwealth does not have a ASAE 3402 Type 2 Audit Report prepared, that they have had to qualify Part A & Part B of the return, because they cannot rely on the information in the Netwealth Reports.

Have others here had this issue with their auditors in relation to ASAE 3402, and how do they go about rectifying this? a lot of SMSF’s are going to be invested in third party platforms or wraps where the audit report is not going to be ASAE 3402 Type 2 Audit Report.

The return will be qualified every year unless the trustees opt out of investing with Netwealth.

Any suggestions?

2

I had this same problem with Interactive Brokers. For any years (10) I have been asking IB for an audit report but no joy. This year the auditor was going to qualify the financial accounts. I informed the IB agent about this and within a week I had a report that came from the parent company in America. No problems. Maybe you need to push Netwealth harder.

3

Thank you Trev…Maybe thats the way then. I will contact Netwealth and see what they can come up with.

I also have a client who invests through Interactive Brokers, so that is good to know.

Thanks again