Notice of Disqualification - Daryl Plimmer- 1 December 2023

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to provide a comprehensive framework for the supervision and regulation of the superannuation industry in Australia, addressing issues related to the management and administration of superannuation entities. The Act is overseen by the Australian Parliament and aims to protect the interests of superannuation fund members by ensuring the proper management of their funds. The policy objective of the Act is to maintain the integrity of the superannuation system by enforcing compliance with the legal and regulatory requirements governing superannuation entities. The Act includes provisions for the disqualification of responsible officers who fail to meet these standards, as exemplified in the notice of disqualification issued to Daryl Plimmer under subsection 126A(6) of the SISA, which was enacted to address the issue of non-compliance by responsible officers within superannuation entities.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to the trustees, investment managers, custodians, and responsible officers of superannuation entities, ensuring compliance with regulations governing the superannuation industry. This Act has a national reach, applying across the Commonwealth of Australia, and its provisions are enforced to maintain the integrity and proper functioning of the superannuation system. The Act specifically targets individuals who have been found to have contravened its provisions while acting in a responsible capacity, such as a responsible officer of a corporate trustee, and includes provisions for disqualifying such individuals from holding certain roles within the superannuation sector. The geographic reach of the Act is nationwide, applying to all states and territories within Australia. The disqualification of Daryl Plimmer under the Act is effective immediately upon issuance, and the details of such disqualification are published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and public awareness. Additionally, the Act provides for the possibility of disqualification revocation under certain conditions, either by the authority's own initiative or upon a written application by the disqualified individual.

Key Provisions

The primary operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) involved in this disqualification notice are sections 126A(2), 126A(6), and 126A(7). Section 126A(2) permits the disqualification of an individual if the Commissioner of Taxation is satisfied that the individual was a responsible officer of a corporate trustee who has contravened the SISA. Section 126A(6) requires the Commissioner to provide written notice of this disqualification to the disqualified person, and section 126A(7) mandates the publication of this notice as a Notifiable Instrument in the Federal Register of Legislation. In this case, Daryl Plimmer has been disqualified under these provisions due to his role in corporate trustee contraventions. The SISA imposes various obligations and requirements on the parties it governs, including trustees, investment managers, and custodians of superannuation entities. These obligations include adhering to legislative standards for the prudent management of superannuation funds, ensuring compliance with financial and operational requirements, and maintaining proper records and reporting. As a responsible officer of a corporate trustee, Daryl Plimmer would have been expected to oversee these obligations and ensure the corporate trustee's compliance with the SISA. Breaching the SISA can result in both civil and criminal consequences. Specifically, 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 a body corporate that is a trustee, investment manager, or custodian of a superannuation entity, while knowing they are disqualified. The maximum penalty for this offence is two years imprisonment. Additionally, under subsection 126A(5) of the SISA, the disqualification can be revoked on the initiative of the Commissioner or upon the written application of the disqualified person. If Daryl Plimmer were to seek such a revocation, he would need to submit a written application to the Commissioner. For individuals affected by the decision and dissatisfied with it, section 344 of the SISA provides a mechanism to request a reconsideration by the Commissioner. This request must be made in writing within 21 days of receiving notice of the disqualification and should include the reasons why the decision is believed to be incorrect. This provision ensures that there is a formal process in place for challenging the disqualification and potentially having it overturned.