ASIC Superannuation (Notice of disqualification—John Giannicos) Instrument 2024/471

Overview

The ASIC Superannuation (Notice of disqualification—John Giannicos) Instrument 2024/471I, enacted by Scott Rea, a delegate of the Australian Securities and Investments Commission, addresses the need to manage and mitigate risks within the superannuation industry by disqualifying individuals who do not meet the required standards for approved self-managed superannuation fund (SMSF) auditors. This instrument is issued under subsection 130F(5) of the Superannuation Industry (Supervision) Act 1993, aiming to uphold the integrity and compliance of the superannuation industry. The policy objective of this instrument is to ensure that only qualified and compliant individuals act as SMSF auditors, thereby protecting the interests of superannuation fund members and maintaining the overall stability of the financial system.

Scope and Application

The ASIC Superannuation (Notice of disqualification—John Giannicos) Instrument 2024/471 pertains to the application of the Superannuation Industry (Supervision) Act 1993, specifically addressing the disqualification of an individual from their role as an approved SMSF auditor. This notifiable instrument applies directly to John Giannicos, who holds an approved SMSF auditor registration number 100176270. The instrument is issued under the authority of Scott Rea, acting as a delegate of the Australian Securities and Investments Commission, and it is effective from 14 June 2024. This order is a direct application of the Act, which regulates the supervision of the superannuation industry in Australia. The instrument does not specify any exclusions, exemptions, or thresholds, implying that it applies in its entirety to the disqualified individual. The jurisdictional reach of this instrument is national, as it is issued under Commonwealth legislation, thereby extending across all states and territories of Australia.

Key Provisions

The main operative section of this notifiable instrument is subsection 130F(2) of the Superannuation Industry (Supervision) Act 1993. This section empowers the Australian Securities and Investments Commission (ASIC) to disqualify an individual from being an approved self-managed superannuation fund (SMSF) auditor. In this instance, ASIC has exercised its authority to disqualify John Giannicos, an approved SMSF auditor with the registration number 100176270, from performing this role, effective from 14 June 2024. This disqualification order is attached to the ASIC Superannuation (Notice of disqualification—John Giannicos) Instrument 2024/471I and was approved by Scott Rea, a delegate of ASIC, on 7 June 2024. The Act imposes certain obligations on ASIC when exercising its powers under subsection 130F(2). ASIC must provide a written notice of the disqualification to the individual in question, which includes details of the reasons for the disqualification and the effective date of the disqualification order. In this case, ASIC has fulfilled these obligations by issuing the attached disqualification order to John Giannicos. Additionally, the Act requires ASIC to ensure that the disqualified individual, John Giannicos, is informed of his right to seek internal review or external review of the disqualification decision by the Administrative Appeals Tribunal. Breaching the provisions of the Superannuation Industry (Supervision) Act 1993 can result in both civil and criminal penalties. For individuals or entities found to have contravened the Act, civil penalties can include fines of up to $210,000 for a body corporate and $42,000 for an individual, as stipulated in section 1317E of the Act. Furthermore, under section 1317G, engaging in conduct that constitutes a breach of the Act may also lead to criminal charges, with maximum penalties including fines of up to $2,100,000 for a body corporate and $420,000 for an individual, as well as potential imprisonment terms. These provisions underscore the importance of compliance with the Act and the potential severe consequences of non-compliance.