NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Charles A Davis
GLENBROOK NSW 2773
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(2) of the SISA.
I have disqualified you as I am satisfied that the corporate trustee of one or more superannuation entities has contravened the SISA on one or more occasions, and at the time of the contraventions you were a responsible officer of the corporate trustee and the seriousness of the contraventions provides grounds for disqualifying you.
The disqualification takes effect on the day on which it is made.
Dated: 23 May 2019
James O'Halloran
Deputy Commissioner of Taxation
Per Robert Moon
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 to address the need for stringent regulation and supervision of the superannuation industry in Australia. This Act was developed to ensure that the trustees, investment managers, and custodians of superannuation entities adhere to stringent standards, thus protecting the interests of superannuation fund members. The Act was introduced by the Australian Parliament with the overarching policy objective of safeguarding the financial well-being and retirement security of Australians by regulating the administration and oversight of superannuation funds. This legislative framework aims to prevent misconduct, ensure compliance with legal and regulatory requirements, and promote the efficient and responsible management of superannuation funds.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the supervision and management of superannuation funds, encompassing trustees, investment managers, custodians, and responsible officers of corporate trustees. The Act's jurisdiction spans the entire Commonwealth of Australia, providing a uniform regulatory framework to ensure the integrity and proper management of superannuation funds. A key aspect of the Act is its disqualification provisions, whereby individuals can be disqualified from acting in a responsible capacity within the superannuation industry if they are found to have contravened the Act's provisions, particularly if their actions have caused significant harm or breaches of trust. Exclusions from the Act are limited, and its application can be further defined and extended through subordinate instruments, ensuring comprehensive oversight and enforcement of superannuation regulations. This notice of disqualification under section 126A of the Act serves to immediately prohibit Charles A Davis from any involvement in the management or trusteeship of superannuation entities, with the disqualification taking effect from the date of issuance.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) outlines various provisions for the supervision of superannuation entities, including mechanisms for disqualifying individuals from certain roles if they are found to have contravened the Act. Section 126A(2) of the Act empowers the Commissioner of Taxation to disqualify an individual from being a responsible officer of a corporate trustee if they have reason to believe that the corporate trustee has contravened the Act on one or more occasions and the seriousness of the contraventions justifies the disqualification. This is evidenced by the notice provided to Charles A Davis, which states that he has been disqualified due to his role as a responsible officer of a corporate trustee that has contravened the SISA.
The obligations imposed by the Act on parties such as Charles A Davis include adherence to the standards and requirements set forth within the SISA. As a responsible officer, Davis would have been required to ensure that the corporate trustee complied with all provisions of the Act, including but not limited to, the prudent management of superannuation funds and the maintenance of proper records and reports. His disqualification indicates a failure to uphold these obligations, leading to the decision to bar him from future involvement in managing superannuation entities.
Failure to comply with the disqualification can lead to serious legal consequences. Under section 126K of the SISA, it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer of such an entity. The maximum penalty for this offence is two years imprisonment, underscoring the seriousness of the Act’s provisions and the importance of adhering to the stipulated requirements. This provision aims to protect the interests of superannuation fund members by ensuring that only qualified and trustworthy individuals manage these funds.