Notice of Disqualification - Damien Delaurentis- 17 January 2024

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Australian Parliament to regulate the administration of superannuation funds and ensure their proper management. The legislation was introduced to address the need for oversight and regulation in the superannuation industry, particularly in light of the significant financial responsibilities and trust placed in trustees and other responsible officers. The policy objective of the Act is to protect the interests of superannuation fund members by ensuring that trustees and other officers act with integrity and competence, and by imposing penalties for breaches of the Act. In the case of Damien Delaurentis, he has been disqualified under subsection 126A(2) of the SISA due to the contravention of the Act by the corporate trustee of one or more superannuation entities, for which he was a responsible officer at the time. The disqualification is effective from the date of notice and details will be published as a Notifiable Instrument in the Federal Register of Legislation.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the supervision and management of superannuation funds within Australia. Specifically, the Act imposes disqualifications on responsible officers of corporate trustees who contravene the provisions of the Act. The scope of the Act includes trustees, investment managers, and custodians of superannuation entities, as well as corporate trustees themselves. The disqualification applies nationally and is enforced by the Commissioner of Taxation, who may delegate this authority. Notably, the Act provides for the publication of disqualification notices in the Federal Register of Legislation, ensuring transparency and accountability. Additionally, the Act includes provisions for the revocation of disqualifications and outlines the process for seeking reconsideration of the decision within 21 days. While the Act primarily governs the conduct of responsible officers and corporate trustees, it does not specify any particular industry or threshold levels for application, thereby maintaining a broad jurisdictional reach.

Key Provisions

The key provisions of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to this notice include subsection 126A(2), which empowers the Commissioner of Taxation to disqualify a person from being involved in the management of a superannuation entity if there has been a contravention of the Act. Subsection 126A(6) mandates that a formal notice of disqualification must be issued to the affected party, and subsection 126A(7) requires that this notice be published as a Notifiable Instrument in the Federal Register of Legislation. The disqualification takes effect on the day it is issued, as outlined in the notice. The Act imposes specific obligations on responsible officers of corporate trustees of superannuation entities. They must ensure that their entities comply with the provisions of the SISA. If a contravention occurs, and it is determined that the responsible officer was aware or should have been aware of the contravention, they can be disqualified. The obligations extend to maintaining high standards of governance and compliance within the superannuation industry. Section 126K of the SISA creates offences related to the disqualification of individuals. 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 a body corporate that is a trustee, investment manager, or custodian. The maximum penalty for this offence is two years imprisonment. This section underscores the importance of adhering to the disqualification provisions and the serious consequences of failing to do so. Under subsection 126A(5) of the SISA, the disqualification can be revoked either by the Commissioner on their own initiative or upon a written application by the disqualified person. This provision offers a potential pathway for reinstatement if the grounds for disqualification are no longer applicable or have been rectified. Additionally, section 344 allows for the reconsideration of the disqualification decision by the Commissioner if the affected party submits a written request within 21 days of receiving the notice, providing reasons why the decision should be reconsidered.