Notice of Disqualification - Drew Graham Leverett - 8 January 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide a regulatory framework for the superannuation industry in Australia, ensuring that trustees, investment managers, and custodians of superannuation entities adhere to the necessary standards and comply with legal obligations. This Act was introduced to address the need for robust oversight and regulation of superannuation entities to protect the interests of superannuation members. The SISA was enacted by the Commonwealth Parliament and aims to maintain the integrity, efficiency, and soundness of the superannuation industry, thereby safeguarding the retirement savings of Australians. The Act includes provisions for the disqualification of responsible officers who fail to meet these regulatory standards, ensuring accountability and upholding the trust placed in superannuation trustees. The SISA empowers the Commissioner of Taxation to disqualify individuals who have been responsible officers of a corporate trustee when the trustee contravenes the Act, particularly if the contraventions are serious enough to warrant such action. This legislative measure is intended to deter non-compliance and reinforce the importance of adhering to superannuation regulations. The disqualification process includes a formal notice to the affected individual, as seen in the case of Drew Graham Leverett, and details of such disqualifications are published as Notifiable Instruments in the Federal Register of Legislation. Additionally, the Act provides avenues for review and reconsideration of disqualification decisions, ensuring that due process is followed and that affected parties have the opportunity to contest the decision if they believe it to be unjust.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to responsible officers of corporate trustees who manage superannuation entities, ensuring compliance with the law and safeguarding the financial interests of superannuation fund members. The Act extends its reach across Australia, encompassing both Commonwealth and state jurisdictions, and targets individuals who have breached the legislative requirements governing the superannuation industry. The disqualification of Drew Graham Leverett under subsection 126A(2) of the Act underscores the seriousness of non-compliance and aims to protect the integrity of the superannuation system. The Act allows for the publication of such disqualifications as Notifiable Instruments in the Federal Register of Legislation, enhancing transparency and accountability. Exemptions or exclusions from the Act are not explicitly detailed in the provided text, but it is clear that the Act applies to any responsible officer found to have contravened its provisions. Additionally, the Act may extend or restrict its application through subordinate instruments, although specific details are not provided in the notice.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes specific provisions that allow for the disqualification of individuals who have been responsible officers of corporate trustees that have contravened the Act. Under subsection 126A(2) of the SISA, a delegate of the Commissioner of Taxation can disqualify a responsible officer if they are satisfied that the corporate trustee has contravened the Act on one or more occasions and the seriousness of the contraventions justifies the disqualification. This notice, issued under subsection 126A(6), confirms that Drew Graham Leverett has been disqualified because the corporate trustee of one or more superannuation entities contravened the SISA while he was a responsible officer. The disqualification becomes effective on the date of the notice, which in this case is 8 January 2025. The obligations imposed on Drew Graham Leverett by this disqualification are significant. As outlined in Note 2, 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 or a body corporate that is a trustee, investment manager, or custodian of a superannuation entity, if they know they are disqualified. This prohibition is enforced under section 126K of the SISA and carries a maximum penalty of two years imprisonment. This requirement serves to protect the interests of superannuation fund members by ensuring that individuals with a history of serious contraventions do not continue to manage these funds. Failure to adhere to the disqualification can result in severe civil and criminal consequences. As stated in Note 2, knowingly acting in any capacity prohibited by the disqualification is a criminal offence with a penalty of up to two years in jail. This reflects the seriousness with which the legislation treats breaches of these provisions. Additionally, Note 4 provides that if Drew Graham Leverett is dissatisfied with the disqualification decision, he can request a reconsideration from the Commissioner within 21 days of receiving the notice. This reconsideration process allows for an opportunity to address any perceived errors in the disqualification decision. Note 3 further explains that the disqualification can be revoked either on the initiative of the Commissioner or upon a written application by Drew Graham Leverett. This provides a pathway for relief if circumstances change or if it can be demonstrated that the grounds for the disqualification no longer exist. Overall, the legislation and the accompanying notice establish clear and stringent controls on the activities of disqualified individuals to safeguard the superannuation industry.