The new MOU came into effect on September 16.

Compliance report reminder issued

RESPONSIBLE entities have been given a reminder to lodge their compliance plan reports for 2003-04.

For most responsible entities the deadline is September 30.

According to the Australian Securities and Investments Commission, many responsible entities have failed to meet the compliance plan lodgement deadline.

Under the corporations act responsible entities are required to ensure a registered company auditor is engaged to audit the compliance plan for the managed investment scheme managed by the entity.

The auditor must prepare and give a compliance plan audit report to the responsible entity.

The responsible entity must then lodge that report with ASIC within three months of the end of the financial year.

This should occur at the same time as the responsible entity lodges its own financial statements, usually by September 30.

Failure to lodge on time is a liability offence and subject to strict penalties.

ASIC executive director of financial service regulations Ian Johnston said: "ASIC’s recent view of practices in the managed investments industry regarding the audit of compliance plans for managed investment schemes indicated that many responsible entities failed to lodge their compliance plan audit reports with ASIC by the due date".

"In fact, a significant number of entities have been lodging their reports up to three months late," he said.

"Responsible entities are reminded that failure to lodge the key compliance plan audit report on time is a breach of the law and is regarded by ASIC as a key compliance failure."