Notice of Disqualification – Glenn Korn

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted by the Australian Parliament to address the need for rigorous oversight and regulation within the superannuation industry, aimed at protecting the interests of superannuation fund members. The legislation establishes a framework for the regulation of superannuation entities, trustees, and related activities, ensuring that the management and administration of superannuation funds adhere to high standards of conduct and accountability. The Act was introduced to fill a significant gap in the regulation of the superannuation industry, which was increasingly seen as critical to safeguarding the financial security of millions of Australians. The overarching policy objective of the Act is to maintain public confidence in the superannuation system by ensuring that those who manage superannuation funds do so with integrity and competence. Glenn Korn has been disqualified under subsection 126A(1) of the Superannuation Industry (Supervision) Act 1993 due to contraventions of the Act, the seriousness of which justifies disqualification. This disqualification, issued by Emma Rosenzweig, a delegate of the Commissioner of Taxation, prohibits Mr. Korn from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of such a body corporate. The disqualification notice, which is effective immediately, will also be published in the Commonwealth Government Notices Gazette as per subsection 126A(7) of the Act. Mr. Korn has the right to request a reconsideration of this decision within 21 days and may apply for the revocation of his disqualification under subsection 126A(5). Failure to comply with the disqualification could result in criminal penalties, including up to two years in jail, as outlined in section 126K of the Act.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management of superannuation funds within Australia, including trustees, investment managers, and custodians. The Act has a national reach, governing the conduct of these entities across all states and territories. The Act applies to any person who contravenes the legislation, and in the case of entities, any responsible officers who are directly involved in the management of the funds. There are no explicit exclusions or exemptions stated within the Act, though the application of its provisions can be extended or restricted through subordinate instruments. This legislative framework ensures that those managing superannuation funds adhere to stringent standards to protect the interests of fund members, and failure to comply can result in severe penalties, including disqualification and potential criminal charges.

Key Provisions

The notice issued to Glenn Korn under subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA) is a formal declaration of his disqualification by Emma Rosenzweig, a delegate of the Commissioner of Taxation. The disqualification arises because Glenn Korn has contravened the SISA on one or more occasions, with the seriousness of the contraventions warranting such a measure. This disqualification is effective immediately upon issuance, as stated in the notice dated 25 July 2023. The notice also informs Glenn Korn that details of his disqualification will be published in the Commonwealth Government Notices Gazette as per subsection 126A(7) of the SISA. The SISA imposes significant obligations on the individuals and entities it governs, particularly in the context of superannuation entities. Under section 126K, it is an offence for a disqualified person to act or be a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer or a body corporate that serves in such roles. This prohibition extends to any person who knowingly acts in these capacities while being disqualified. The potential consequences for violating this provision are severe, as the maximum penalty is two years imprisonment. Furthermore, the SISA provides avenues for Glenn Korn to seek reconsideration of the disqualification. Under section 344, Glenn Korn can request that the Commissioner reconsider the decision within 21 days of receiving the notice of disqualification. This request must be made in writing and should detail the reasons why the decision is believed to be incorrect. This mechanism ensures that Glenn Korn has an opportunity to challenge the decision if he believes it is unjust or based on incorrect information. Additionally, the SISA allows for the potential revocation of the disqualification. Under subsection 126A(5), the disqualification can be revoked either on the initiative of the Commissioner of Taxation or upon a written application by Glenn Korn. This provision provides a pathway for Glenn Korn to potentially regain his eligibility to engage in activities related to superannuation entities, should circumstances change or if there is new evidence that warrants reconsideration of the disqualification.