NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
MR GREGORY SMITH
BOX HILL SOUTH VIC 3128
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 seriousness of the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 3 December 2012
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 was enacted to address issues within the superannuation industry by providing a regulatory framework designed to protect the interests of superannuation fund members. The Act was introduced by the Australian Parliament to ensure the proper management and supervision of superannuation entities, aiming to prevent misconduct and financial mismanagement that could adversely affect members' retirement savings. The policy objective of the Act is to maintain the integrity of the superannuation system by imposing disqualification powers against individuals who engage in serious contraventions of the Act. This ensures that those entrusted with the management of superannuation funds adhere to high standards of conduct and fiduciary duty. The Act provides mechanisms for the Commissioner of Taxation to disqualify individuals from holding positions of responsibility within superannuation entities if they are found to have breached the Act in a manner warranting such action.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to individuals and entities involved in the management and administration of superannuation funds, such as trustees, investment managers, and custodians. The Act provides a framework for the regulation and supervision of the superannuation industry, ensuring compliance with legislative standards to protect the interests of superannuation fund members. The Act applies across the Commonwealth of Australia and regulates conduct and transactions related to superannuation funds, regardless of where the entities are based or operate. The disqualification process under the SIS Act can apply to any person who contravenes the Act, leading to their potential exclusion from holding positions of responsibility within superannuation entities. The Act allows for the extension of its application through subordinate instruments, which may include regulations and guidelines that further detail the scope and application of the Act’s provisions. There are no explicit exclusions or exemptions stated in the notice, but the Act does provide for certain categories of superannuation funds to be exempt from some provisions, typically based on their size or the nature of their operations.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SIS Act) provides for the regulation of superannuation entities and the disqualification of individuals from holding certain positions within these entities. Section 126A(6) mandates that a notice of disqualification be issued to individuals who have been disqualified from being a trustee or a responsible officer of a body corporate that serves as a trustee, investment manager, or custodian of a superannuation entity. The notice, such as the one sent to Mr. Gregory Smith, informs the individual that they have been disqualified based on a determination that they have contravened the SIS Act in a manner that warrants such action.
The Act imposes several obligations on the parties it governs. For instance, trustees and responsible officers of superannuation entities must adhere to the provisions of the SIS Act, which include fiduciary duties, investment standards, and reporting requirements. Section 126A(1) of the SIS Act allows for the disqualification of individuals who have contravened these provisions. The seriousness of the contraventions is a critical factor in determining whether disqualification is warranted. This section ensures that only those who have acted in a manner that significantly breaches the Act are removed from their positions to protect the interests of superannuation fund members.
Breaches of the SIS Act can lead to significant consequences. The Act provides for both civil and criminal penalties. Under section 126A(1), the primary consequence for contravening the Act is the disqualification from holding certain positions within superannuation entities. This disqualification serves as a deterrent and ensures that individuals who fail to comply with the Act's requirements are removed from positions of trust and responsibility. Additionally, the Act may lead to further legal action, including fines and imprisonment, depending on the severity of the contraventions. The penalties aim to uphold the integrity of the superannuation system and protect the interests of superannuation fund members.