NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mr Graham Shepherd
BULIMBA QLD 4171
I, Ivan Parrett, a delegate of the Commissioner of Taxation, give you notice as required by subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SIS Act), that I have made a decision to disqualify you from being a trustee or a responsible officer of a body corporate that is a trustee, investment manager or custodian, of a superannuation entity.
I have disqualified you under subsection 126A(1) of the SIS Act as I am satisfied that you have contravened the SIS Act on one or more occasions and the nature, seriousness and number of the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 18 July 2013
Ivan Parrett
Assistant Commissioner of Taxation
Note 1:
In accordance with subsection 126A(7) of the SIS Act, particulars of this disqualification notice will be published in the Gazette.
Note 2:
In accordance with subsection 126A(5) of the SIS Act, we may revoke this disqualification order on our own initiative or on written application made by you.
Note 3:
In accordance with section 344 of the SIS Act, if you are a person who is affected by this decision and you are dissatisfied with it, you may ask the Commissioner to reconsider this decision. Such a request must be made in writing within 21 days of the day on which you received notice of the decision and must also give the reasons for making the request.
Overview
The Superannuation Industry (Supervision) Act 1993 (SIS Act) was enacted to address issues surrounding the governance and administration of superannuation funds in Australia. The Act was introduced to ensure the proper administration of superannuation entities, protecting the interests of superannuation fund members. The SIS Act provides for the regulation of trustees and responsible officers, aiming to maintain the integrity and stability of the superannuation industry. The Act was enacted by the Commonwealth Parliament and seeks to provide policy objectives such as safeguarding the retirement savings of Australians and maintaining public confidence in the superannuation system. This legislative framework allows for the disqualification of individuals found to have contravened the Act, as seen in the disqualification notice issued to Mr Graham Shepherd, reflecting the Act’s intent to uphold high standards of conduct within the superannuation sector.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to individuals and entities involved in the management and oversight of superannuation funds within Australia. The Act is primarily concerned with the regulation of trustees, investment managers, and custodians of superannuation entities to ensure compliance with the relevant legislative requirements. The geographic scope of the Act is national, extending to all states and territories of Australia. The Act does not explicitly exclude any particular person or entity from its purview; however, certain exemptions and exclusions may apply based on the specific provisions of the legislation and any subordinate instruments. The Act's application can be extended or restricted through regulations and other instruments, allowing for a flexible approach to enforcement and compliance. The notice provided to Mr Graham Shepherd under subsection 126A(6) of the SIS Act illustrates the application of the Act in disqualifying individuals from certain roles within the superannuation industry due to contraventions of the Act.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SIS Act) includes specific provisions that allow for the disqualification of individuals from holding positions of responsibility within superannuation entities. Section 126A(6) mandates that a delegate of the Commissioner of Taxation must provide a disqualified person with a notice detailing the reasons for their disqualification. This notice, as evidenced in the document, informs Mr. Graham Shepherd of his disqualification from serving as a trustee or responsible officer of a body corporate involved with superannuation entities. Section 126A(1) outlines the criteria for disqualification, which applies when the delegate is satisfied that the individual has contravened the SIS Act in a manner that warrants such a penalty.
Under the SIS Act, individuals who are disqualified face significant obligations and restrictions. They are prohibited from engaging in any activities that require the holding of a valid Australian Financial Services (AFS) licence or Australian Prudential Regulation Authority (APRA) licence. This restriction applies to any role within a superannuation entity, including but not limited to, trustees, investment managers, and custodians. The disqualification order also mandates that the individual must notify any entity they are involved with of their disqualification, ensuring transparency and compliance with the Act’s provisions.
The SIS Act imposes severe consequences for breaches of its provisions. According to the document, the disqualification is immediate, effective from the date of the notice. Any contravention of the disqualification order can lead to civil and criminal penalties. Civil penalties can include substantial fines, with the maximum penalty varying depending on the severity and frequency of the breach. Criminal penalties can include imprisonment, reflecting the seriousness of the contraventions against the Act. Furthermore, the Act provides avenues for the Commissioner to reconsider the disqualification decision if the affected person submits a written request within 21 days of receiving the notice, as stipulated in section 344 of the SIS Act.