NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mr David Daintree
COLEBROOK TAS 7027
I, Ivan Parrett, a delegate of the Commissioner of Taxation, give you notice as required by subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SIS Act), that I have made a decision to disqualify you from being a trustee or a responsible officer of a body corporate that is a trustee, investment manager or custodian, of a superannuation entity.
I have disqualified you under subsection 126A(1) of the SIS Act as I am satisfied that you have contravened the SIS Act on one or more occasions and the seriousness of the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 18 November 2013
Ivan Parrett
Assistant Commissioner of Taxation
Per Michael Grivell
Note 1:
In accordance with subsection 126A(7) of the SIS Act, particulars of this disqualification notice will be published in the Gazette.
Note 2:
In accordance with subsection 126A(5) of the SIS Act, we may revoke this disqualification order on our own initiative or on written application made by you.
Note 3:
In accordance with section 344 of the SIS Act, if you are a person who is affected by this decision and you are dissatisfied with it, you may ask the Commissioner to reconsider this decision. Such a request must be made in writing within 21 days of the day on which you received notice of the decision and must also give the reasons for making the request.
Overview
The Superannuation Industry (Supervision) Act 1993 (SIS Act) was enacted to address the need for stringent regulation within the superannuation industry to protect the interests of superannuation fund members. This legislation was introduced by the Australian Parliament to establish a comprehensive regulatory framework for superannuation funds, ensuring their soundness, efficiency, and proper management. The policy objective of the SIS Act is to maintain the integrity and sustainability of the superannuation system by enforcing compliance and penalising misconduct among trustees and responsible officers. The Act empowers the Commissioner of Taxation to disqualify individuals from holding positions of responsibility within superannuation entities if they have contravened the Act, ensuring that those who fail to adhere to the prescribed standards are appropriately sanctioned.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to individuals and entities involved in the administration of superannuation entities, including trustees, investment managers, and custodians. The Act covers conduct and transactions related to superannuation funds within Australia. It applies across the Commonwealth, impacting both state and territory levels. The disqualification notice issued under the Act applies specifically to Mr David Daintree, who has been found to have contravened the SIS Act. The disqualification order is effective immediately upon the issuance of the notice. The Act allows for the disqualification of individuals from acting as trustees or responsible officers if they are found to have engaged in serious contraventions. Additionally, the Act includes provisions for the potential revocation of disqualification orders and the right to appeal decisions made under the Act.
Key Provisions
The main operative sections of the notice are subsection 126A(6) and subsection 126A(1) of the Superannuation Industry (Supervision) Act 1993 (SIS Act). Subsection 126A(6) requires the delegate of the Commissioner of Taxation to give the affected person a notice of disqualification, as evidenced in this case by the notice given to Mr David Daintree. Under subsection 126A(1), the delegate may disqualify an individual from being a trustee or a responsible officer of a superannuation entity if they are satisfied that the individual has contravened the SIS Act on one or more occasions, and the seriousness of the contraventions provides grounds for disqualifying the individual.
The SIS Act imposes specific obligations on trustees and responsible officers of superannuation entities, including adherence to the legislative and regulatory standards governing the superannuation industry. These obligations include, but are not limited to, the requirement to act in the best interests of the members, proper management of funds, and compliance with reporting and disclosure obligations. The Act also imposes duties on trustees and responsible officers to ensure that the superannuation entity they manage is run efficiently and in accordance with the law.
The disqualification order under the SIS Act can have significant consequences for the individual affected. A disqualification order prohibits the individual from being a trustee or a responsible officer of a superannuation entity, which can effectively bar them from participating in the management and administration of superannuation funds. This can have serious financial and professional repercussions for the individual, as well as potential implications for the entities they are involved with.
In terms of penalties and consequences for breach, the SIS Act does not specify penalties for the disqualification itself, as it is a regulatory measure rather than a punitive one. However, the underlying contraventions of the Act that led to the disqualification can incur civil or criminal penalties. For example, contraventions of the Act can result in civil penalties of up to $210,000 for corporations and $42,000 for individuals, as well as potential criminal sanctions including fines and imprisonment. The specific penalties depend on the nature and severity of the contraventions.