NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
David Bianco
OCEAN GROVE VIC 3226
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 provide grounds for disqualifying you.
The disqualification takes effect on the day on which it is made.
Dated: 15 December 2017
James O'Halloran
Deputy Commissioner of Taxation
Per Robert Moon
Acting Director, Superannuation Engagement and Assurance
VIC/TAS Region
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 Parliament of Australia to address issues of governance and accountability within the superannuation industry. This Act provides a framework for the regulation of superannuation funds, ensuring that trustees, investment managers, and custodians operate with integrity and in the best interests of fund members. The legislation was designed to fill a critical gap by establishing a system of licensing and supervision for entities involved in the management of superannuation funds, with the overarching policy objective of protecting the financial interests of superannuation fund members. Under the SISA, individuals who have breached the Act's provisions can be disqualified from managing superannuation entities, with significant penalties for non-compliance.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the supervision and management of superannuation funds within Australia. The Act primarily targets trustees, investment managers, and custodians of superannuation entities, ensuring they adhere to specific standards and regulations designed to protect the interests of superannuation fund members. The geographic reach of the Act is national, applying across all states and territories within Australia. It does not, however, extend to overseas entities unless they are involved in managing superannuation funds in Australia. The Act includes provisions for disqualifying individuals who have contravened its provisions, as evidenced in the notice issued to David Bianco, which highlights the serious consequences of non-compliance. Additionally, the Act allows for the disqualification to be revoked under certain conditions, and provides a process for reconsideration of such decisions. The Act also stipulates that it is an offence for a disqualified person to continue to act in their former capacity, with potential penalties including imprisonment.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) includes specific provisions for disqualifying individuals from roles within superannuation entities. Under section 126A(1), an individual can be disqualified if it is determined that they have contravened the Act in a manner that warrants such action. The notice of disqualification, such as the one issued to David Bianco, must be made in accordance with subsection 126A(6) of the SISA, and it becomes effective on the date it is issued. The notice informs the individual that they are disqualified from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of such an entity.
The SISA imposes obligations on disqualified individuals to ensure they do not engage in activities that breach the Act. For instance, section 126K explicitly states that it is an offence for a disqualified person to be or act as a trustee, investment manager, custodian of a superannuation entity, or a responsible officer of such an entity if they are aware of their disqualification status. This means that any involvement in these roles is prohibited and can lead to legal consequences.
Failing to adhere to the disqualification can result in serious repercussions. According to section 126K, the maximum penalty for knowingly acting in these prohibited roles is two years imprisonment. This significant penalty underscores the importance of compliance with the disqualification order. Additionally, the disqualification notice includes an option for potential revocation, as per subsection 126A(5), either by the authority's own initiative or upon a written application by the disqualified individual.
If a person is affected by the disqualification decision and believes it to be unjust, they have recourse under section 344 of the SISA. This section allows for a reconsideration request to be made in writing to the Commissioner within 21 days of receiving the notice of the disqualification. The request must outline the reasons for believing the decision is incorrect. This provision ensures that individuals have an opportunity to challenge the decision and seek rectification if they consider it to be based on error or unfairness.