NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
George Helou
LAKEMBA NSW 2195
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 number and seriousness of the contraventions provides grounds for disqualifying you.
The disqualification takes effect on the day on which it is made.
Dated: 26 March 2018
James O'Halloran
Deputy Commissioner of Taxation
Per Deb Goldfinch
Director, Engagement and Assurance Superannuation
Australian Taxation Office
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 Commonwealth Parliament to address the need for robust regulation and oversight of the superannuation industry in Australia. The legislation was introduced to safeguard the financial interests and retirement savings of superannuation fund members by ensuring that the entities managing these funds adhere to strict governance and operational standards. One of the key policy objectives of the SISA is to maintain confidence in the superannuation system by disqualifying individuals who have demonstrated a pattern of misconduct or incompetence in their role within the industry. The Act empowers the Commissioner of Taxation to disqualify individuals from managing superannuation entities if they are found to have breached the provisions of the Act in a manner that justifies such action. This legislative framework aims to protect members' retirement savings from potential abuse and mismanagement, thereby promoting the stability and integrity of the superannuation industry.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and oversight of superannuation entities in Australia, including trustees, investment managers, and custodians. The Act operates within the Commonwealth jurisdiction and covers all entities that manage or invest superannuation funds, irrespective of their location within Australia. The SISA imposes obligations on these entities to ensure the proper administration and management of superannuation funds, safeguarding the interests of fund members. The Act’s reach extends to any person or entity that engages in conduct or transactions related to superannuation entities. However, the Act may include exclusions, exemptions, or thresholds that apply to certain entities or types of transactions, which can be further defined through subordinate instruments or regulations issued under the Act. These instruments can extend or restrict the application of the Act by providing additional details or specific conditions under which the Act applies.
Key Provisions
The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) referenced in this notice include subsection 126A(1), which provides the authority for disqualification, and subsection 126A(6), which mandates the provision of a notice when a disqualification occurs. Section 126A(7) details the requirement to publish disqualification notices in the Commonwealth Government Notices Gazette, while section 126K outlines the criminal penalties for a disqualified person acting in prohibited capacities. Additionally, subsection 126A(5) specifies the conditions under which a disqualification may be revoked.
The Act imposes several obligations on individuals like George Helou. Firstly, they must comply with the provisions of the SISA to avoid disqualification. Once disqualified, they are prohibited from acting as a trustee, investment manager, custodian of a superannuation entity, or being a responsible officer or body corporate involved in these roles. Failure to adhere to these prohibitions can result in severe legal consequences. Furthermore, if a disqualified person knowingly engages in the prohibited activities, they commit an offence under section 126K, which carries a maximum penalty of two years in jail.
In terms of potential breaches and consequences, the notice indicates that George Helou is disqualified due to contraventions of the SISA, with the severity of the breaches warranting this action. Under section 126K, any disqualified person who knowingly acts in the prohibited capacities commits an offence and faces up to two years in jail. The notice also clarifies that this disqualification may be subject to revocation either on the delegate's own initiative or upon the disqualified person’s written application as per subsection 126A(5). Additionally, the notice informs George Helou that if he disagrees with the disqualification decision, he can request a reconsideration from the Commissioner within 21 days of receiving the notice, as stipulated in section 344.