Notice of Disqualification – Albert John Del Medico - 6 May 2024

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Australian Parliament to address the need for stringent oversight and regulation of the superannuation industry. This Act aims to protect the interests of superannuation fund members by imposing responsibilities on trustees, investment managers, and custodians, and by establishing a framework for the disqualification of individuals found to be unfit to manage superannuation entities. The policy objective of the SISA is to ensure the integrity and efficiency of the superannuation system, safeguarding the retirement savings of Australians. The Act empowers the Commissioner of Taxation to disqualify individuals who have acted in a manner that warrants such action, as demonstrated in the case of Albert John Del Medico, who has been disqualified under subsection 126A(2) of the SISA for his role in multiple contraventions by the corporate trustee of one or more superannuation entities. This legislative measure is part of a broader strategy to maintain the trust and confidence of the public in the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers within corporate trustees of superannuation entities. This Act has a national reach, operating across Australia, and its provisions extend to all entities involved in the administration of superannuation funds. The Act is designed to regulate and oversee the conduct of individuals and entities responsible for managing superannuation funds, ensuring compliance with prescribed standards and regulations. Exclusions or exemptions from the Act are limited, with most entities and their officers being subject to its provisions. The Act also provides for the disqualification of individuals found to have acted in breach of its provisions, as evidenced by the disqualification notice issued to Albert John Del Medico. The disqualification can be revoked under specific conditions, and there is a provision for appeal against the decision within 21 days of receiving notice. Additionally, the Act imposes significant penalties, including up to two years in jail, for disqualified persons who continue to act in contravention of the Act.

Key Provisions

The primary operative sections of the legislation, specifically subsection 126A(6) and subsection 126A(2) of the Superannuation Industry (Supervision) Act 1993 (SISA), inform the process and grounds for disqualifying a person from acting in a responsible capacity within a superannuation entity. Subsection 126A(6) mandates the Commissioner of Taxation, or a delegate, to notify the individual in writing when a disqualification has been issued. Subsection 126A(2) outlines the circumstances under which such a disqualification can occur, namely when there is evidence that the corporate trustee of one or more superannuation entities has contravened the SISA on multiple occasions, and the individual was a responsible officer at the time of the contraventions. The number and seriousness of these contraventions must provide sufficient grounds for disqualification. The Act imposes specific obligations on the disqualified individual, Albert John Del Medico, as well as on any corporate trustee or responsible officer within the superannuation industry. For Albert John Del Medico, the immediate obligation is to cease any activities that would allow him to be a trustee, investment manager, custodian, or responsible officer of a superannuation entity. Any continued involvement in such roles after the disqualification notice is issued would constitute a breach of the Act. Furthermore, the Act imposes an obligation on the Commissioner of Taxation, or a delegate, to publish details of the disqualification as a Notifiable Instrument in the Federal Register of Legislation, as outlined in subsection 126A(7). The Act also establishes clear legal consequences for breaches. Under section 126K of the SISA, it is an offence for a disqualified person to knowingly act as a trustee, investment manager, custodian, or responsible officer of a superannuation entity. The maximum penalty for committing this offence is a two-year jail term. Additionally, the Act provides a mechanism for the disqualification to be revoked either on the initiative of the Commissioner of Taxation or upon a written application by the disqualified person, as stipulated in subsection 126A(5). Furthermore, if Albert John Del Medico is affected by this decision and is dissatisfied, he has the right to request a reconsideration of the decision by the Commissioner within 21 days of receiving the notice, as per section 344 of the SISA. This request must be in writing and should include the reasons for believing the decision to be incorrect.