Notice of Confirmation of Disqualification – Drew Leverett – 25 February 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address issues and gaps in the regulation of the superannuation industry in Australia, ensuring that superannuation entities are managed in the best interests of their members. The Act was passed by the Commonwealth Parliament and its primary policy objective is to protect the financial well-being of superannuation fund members by regulating the activities of trustees, investment managers, and custodians of superannuation entities. The Act provides a framework for the supervision and enforcement of compliance within the superannuation industry, with mechanisms for disqualifying individuals who have acted contrary to the interests of fund members. This includes the ability to confirm the disqualification of responsible officers who have contravened the Act, as evidenced in the notice to Drew Leverett, confirming his disqualification due to his role in corporate trustee contraventions.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers of corporate trustees within the superannuation industry, encompassing both individuals and entities that manage superannuation funds. The act has a national reach, applying across Australia, and its provisions govern the conduct and transactions of these officers to ensure compliance with the stringent standards set for the management of superannuation funds. The act includes specific provisions for disqualifying individuals from managing superannuation entities if they contravene its provisions, with the seriousness of the contravention being a key determinant. The act also allows for the publication of disqualification notices as Notifiable Instruments in the Federal Register of Legislation, ensuring transparency and accountability. Additionally, the act specifies that it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, with significant penalties, including up to two years imprisonment, for non-compliance. The act also provides a mechanism for judicial review of disqualification decisions through the Administrative Review Tribunal.

Key Provisions

The key provision of the legislation in question is subsection 344(6) of the Superannuation Industry (Supervision) Act 1993 (SISA) which requires a delegate of the Commissioner of Taxation to give notice of the confirmation of a disqualification to the individual in question. In this case, the notice of confirmation of disqualification is given to Drew Leverett, a resident of West Perth, Western Australia, under subsection 344(6) of the SISA by Andrew Orme, a delegate of the Commissioner of Taxation. This notice confirms Drew Leverett’s disqualification as a responsible officer of a corporate trustee of one or more superannuation entities, following the contravention of the SISA by the corporate trustee on one or more occasions. The seriousness of these contraventions is deemed sufficient to warrant the disqualification. The obligations imposed by this Act on the parties it governs include ensuring that the corporate trustee of a superannuation entity adheres to the SISA. The Act also imposes the obligation on responsible officers of these entities to act in accordance with the SISA. Failure to do so can result in personal disqualification, as evidenced in this case. Furthermore, the Act mandates that any contravention of the SISA by a corporate trustee must be promptly reported to the relevant authorities. There are also legal consequences outlined in the Act for breaches. Section 126K of the SISA stipulates that it is an offence for a disqualified person, who knows that they are disqualified, to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer or a body corporate that is a trustee, investment manager, or custodian of a superannuation entity. The maximum penalty for this offence is two years imprisonment. This highlights the seriousness of the contraventions and the importance of compliance with the SISA. Additionally, under subsection 344(8) of the SISA, if a person affected by this decision is not satisfied with it, they have the right to apply to the Administrative Review Tribunal to review the decision within 28 days of the Commissioner giving notification of this decision. This provision ensures that there is a mechanism in place for review and appeal of decisions made under the SISA, providing a level of fairness and due process to those affected by such decisions.