NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Andrew Simpson
Highbury SA 5089
I, James O’Halloran, a delegate of the Commissioner of Taxation, give you notice as required by subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA), that I have disqualified you under subsection 126A(1) of the SISA.
I have disqualified you as I am satisfied that you have contravened the SISA on one or more occasions and the nature, seriousness and number of the contraventions provides grounds for disqualifying you.
The disqualification takes effect on the day on which it is made.
Dated: 3 March 2017
James O’Halloran
Deputy Commissioner of Taxation
Per Debra Goldfinch
Note 1:
Under subsection 126A(7) of the SISA, details of this disqualification notice will be published in the Commonwealth Government Notices Gazette.
Note 2:
Under section 126K of the SISA, it is an offence for a disqualified person, who knows that he or she is a disqualified person, to be, or act as a:
trustee, investment manager or custodian of a superannuation entity
responsible officer or a body corporate that is a trustee, investment manager or custodian, of a superannuation entity
The maximum penalty for committing this offence is two years jail.
Note 3:
Under subsection 126A(5) of the SISA, we may revoke this disqualification on our own initiative or on your written application.
Note 4:
Under section 344 of the SISA, if you are affected by this decision and are not satisfied with it, you can ask the Commissioner to reconsider the decision. This request must be made in writing within 21 days of receiving notice of this decision and must give the reasons you think the decision is wrong.
Overview
The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Commonwealth Parliament to provide a regulatory framework for the supervision of superannuation funds in Australia, aiming to protect the interests of superannuation fund members. This Act was introduced to address issues of misconduct, mismanagement, and improper use of funds within the superannuation industry. The notice of disqualification under this Act, as exemplified by the case of Andrew Simpson, signifies that the individual has been found to have contravened the provisions of the SISA, thereby warranting their disqualification from acting in roles related to superannuation entities. The policy objective behind such disqualification is to maintain the integrity and trust within the superannuation sector by preventing individuals with a history of serious contraventions from participating in the management of superannuation funds.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration of superannuation funds in Australia. Specifically, the Act applies to trustees, investment managers, custodians, and responsible officers of superannuation entities. The Act's jurisdiction extends across the Commonwealth, ensuring a uniform approach to the regulation of the superannuation industry nationwide. The notice of disqualification issued under the Act targets individuals who have contravened its provisions, leading to a prohibition from acting in roles such as trustees or investment managers of superannuation entities. The disqualification takes immediate effect upon issuance and is an enforceable action under the Act, with potential criminal penalties for those who continue to act in a disqualified capacity. Additionally, the Act allows for the revocation of such disqualifications under certain conditions and provides a pathway for reconsideration of decisions by affected parties within a specified timeframe.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) contains provisions that allow the Commissioner of Taxation to disqualify individuals who have contravened the Act. In this case, under subsection 126A(1) of the SISA, Andrew Simpson has been disqualified by James O’Halloran, a delegate of the Commissioner of Taxation, based on his contravention of the SISA. The disqualification is effective from the date the notice is issued (subsection 126A(6)). The notice specifies that the grounds for disqualification are due to the nature, seriousness, and number of the contraventions committed by Mr. Simpson.
The Act imposes specific obligations on parties like Mr. Simpson, prohibiting them from acting as trustees, investment managers, or custodians of superannuation entities, or from being responsible officers or part of a corporate body that performs these roles (section 126K). These obligations are designed to ensure compliance with superannuation regulations and protect the interests of superannuation fund members.
Breach of these obligations can result in serious consequences. Under section 126K of the SISA, it is an offence for a disqualified person to act in any of the prohibited roles knowing they are disqualified. The maximum penalty for committing this offence is two years imprisonment. This severe penalty underscores the importance of adhering to the provisions of the SISA and the consequences of non-compliance.
Additionally, the Act provides mechanisms for the review and potential revocation of disqualifications. Under subsection 126A(5) of the SISA, the disqualification can be revoked either on the initiative of the Commissioner or upon a written application by the disqualified person. Furthermore, section 344 of the SISA allows for the reconsideration of the decision by the Commissioner if the affected party is dissatisfied with the disqualification. Such a request must be made in writing within 21 days of receiving notice of the decision and should include the reasons for believing the decision to be incorrect.