Notice of Disqualification – David Jon Marketo

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to establish a framework for the supervision of the superannuation industry, ensuring that superannuation entities are managed in the best interests of members and beneficiaries. The Act was introduced to address the need for robust regulation in the superannuation sector, which was seen as critical for maintaining public confidence and protecting the financial interests of participants. The SISA provides for the regulation of trustees, investment managers, and custodians of superannuation funds, and includes provisions for the disqualification of individuals who have contravened the Act. This disqualification mechanism is intended to deter misconduct and maintain the integrity of the superannuation system. The SISA is administered by the Commissioner of Taxation, who has the authority to disqualify individuals who have acted in a manner that warrants such action. The policy objective behind the SISA is to ensure that superannuation entities are administered in a responsible and transparent manner, safeguarding the financial welfare of superannuation members.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals who are responsible officers of corporate trustees involved in the administration of superannuation entities. Specifically, the Act targets persons like David Jon Marketo who, at the time of contraventions, held a position of responsibility within a corporate trustee. The Act imposes disqualifications on individuals who are found to have contravened the provisions of the SISA, particularly if the contraventions are serious enough to warrant such action. The disqualification not only bars the individual from acting as a trustee, investment manager, or custodian of a superannuation entity, but also extends to any responsible officer or body corporate that might be involved with such entities. The jurisdictional reach of the SISA is national, applying across Australia as a Commonwealth Act. Additionally, the Act provides for the revocation of disqualifications either by the Commissioner on their own initiative or upon a written application by the disqualified person. The Act also sets out a process for reconsideration of the disqualification decision if the affected party is dissatisfied with the outcome.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes specific provisions for the disqualification of individuals who are responsible officers of corporate trustees found to have contravened the Act. Under subsection 126A(2) of the SISA, an individual can be disqualified if the corporate trustee has contravened the Act on one or more occasions, and the individual was a responsible officer at the time of these contraventions. The seriousness of the contraventions must provide grounds for disqualifying the individual. This disqualification takes effect on the date it is made, as stated in the notice to David Jon Marketo, who was disqualified by Emma Rosenzweig, a delegate of the Commissioner of Taxation. The disqualification is based on the belief that Marketo was a responsible officer during the contraventions committed by the corporate trustee of one or more superannuation entities. The Act imposes several obligations and requirements on the parties it governs. Firstly, responsible officers must ensure that the corporate trustee adheres to all provisions of the SISA. This includes compliance with regulations pertaining to the management and administration of superannuation entities, financial reporting, and trustee duties. Failure to meet these obligations can result in both civil and criminal consequences, as the SISA is designed to protect the interests of superannuation fund members. Moreover, the Act mandates that any contraventions by the corporate trustee be reported to the relevant authorities, and responsible officers must cooperate with any investigations or audits conducted by the Australian Taxation Office or other supervisory bodies. Failure to comply with the SISA or to act within the scope of one's duties as a responsible officer can result in severe penalties. Under section 126K of the SISA, it is an offence for a disqualified person to be, or act as, a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer or a body corporate that is a trustee, investment manager, or custodian of a superannuation entity, knowing that they are disqualified. The maximum penalty for committing this offence is two years in jail, as noted in Note 2. This provision serves as a deterrent against any attempts by disqualified individuals to circumvent their disqualification by continuing to participate in the management of superannuation entities. Additionally, the Act provides mechanisms for both the imposition and potential revocation of disqualification. Under subsection 126A(5) of the SISA, the disqualification can be revoked either on the initiative of the authorities or upon a written application by the disqualified person. This flexibility ensures that individuals have an opportunity to re-enter the superannuation industry once they have addressed the issues that led to their disqualification. However, any request for reconsideration of the disqualification must be made in writing within 21 days of receiving notice of the decision, as stipulated in section 344 of the SISA. This ensures that any appeals or reconsiderations are timely and that the decision-making process is fair and efficient.