Notice of Disqualification – Dean Thompson - 27 February 2024

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Parliament of Australia to address the need for robust regulation and oversight of superannuation entities. The Act aims to ensure the proper management and administration of superannuation funds to protect the interests of superannuation fund members. The SISA provides the Commissioner of Taxation with the authority to disqualify individuals from being involved in the governance or management of superannuation entities if they have contravened the Act in a manner that justifies such a disqualification. This legislative measure is intended to maintain the integrity of the superannuation industry and safeguard the financial well-being of superannuation fund members. The policy objective of the SISA is to ensure that superannuation entities are managed in a manner that is in the best interests of the members of the superannuation funds, thereby promoting confidence in the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers of corporate trustees involved in the administration of superannuation entities. The legislation imposes disqualifications on individuals who have been involved in serious contraventions of the SISA while serving as responsible officers. In this instance, Dean Thompson has been disqualified by a delegate of the Commissioner of Taxation due to the corporate trustee's contraventions of the SISA, where Thompson was a responsible officer at the time. The disqualification extends to the entire Commonwealth of Australia, as SISA is a federal act. This notice of disqualification will be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and informing the public of the disqualification. It is also an offence under SISA for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, with penalties including up to two years imprisonment. The disqualification can be revoked by the Commissioner on the initiative of the Commissioner or through a written application by the disqualified person. If Thompson is unsatisfied with the disqualification decision, he can request the Commissioner to reconsider the decision within 21 days of receiving the notice.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes a provision under subsection 126A(6) that allows for the disqualification of individuals who have been associated with a corporate trustee that has breached the SISA. Specifically, the notice in question pertains to Dean Thompson, who has been disqualified under subsection 126A(2) of the SISA due to the corporate trustee's contraventions of the Act while he was a responsible officer. The disqualification is triggered when the contraventions are numerous and serious enough to warrant such action. This disqualification is effective immediately upon issuance of the notice. Under this Act, Dean Thompson now faces specific obligations and restrictions. Section 126K of the SISA stipulates that it is an offence for a disqualified person, such as Thompson, to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer or part of a body corporate that serves in any of these roles for a superannuation entity. This means that Thompson must refrain from any activities that would place him in such a position within the context of superannuation entities. The penalties for breaching these provisions are severe, with a maximum penalty of two years in jail for those who knowingly contravene these restrictions. Additionally, the notice outlines that the details of this disqualification will be published as a Notifiable Instrument in the Federal Register of Legislation, as per subsection 126A(7) of the SISA. This public disclosure is intended to inform relevant parties of the disqualification. Should Thompson wish to have the disqualification reviewed, he can submit a written application for its revocation under subsection 126A(5) of the SISA. The Act also provides a recourse for Thompson through section 344, allowing him to request a reconsideration of the decision within 21 days of receiving the notice, provided he outlines the reasons for his dissatisfaction with the decision in writing.