Notice of Disqualification – Helen Butteriss - 16 May 2024

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Commonwealth Parliament to regulate the superannuation industry in Australia, aiming to protect superannuation benefits by ensuring that trustees and responsible officers are fit and proper persons. The Act establishes a framework for the supervision of superannuation entities and seeks to maintain the integrity of the industry by disqualifying individuals who are not deemed suitable to manage superannuation funds. The legislation allows for the disqualification of individuals who contravene the provisions of the Act, thereby safeguarding the interests of superannuation fund members. The policy objective of the Act is to ensure that superannuation trustees and responsible officers act in the best interests of fund members, maintaining the financial stability and ethical standards of the superannuation industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and administration of superannuation entities within Australia. Specifically, the Act targets trustees, investment managers, custodians, and responsible officers of body corporates that manage superannuation funds. The jurisdictional reach of the SISA is national, encompassing all superannuation activities across the Commonwealth of Australia, including the states and territories. The Act’s application is not limited by specific geographic boundaries but extends uniformly across the country. The SISA imposes strict criteria to ensure that only fit and proper persons manage superannuation entities, thereby safeguarding the interests of superannuation fund members. The Act also provides for the disqualification of individuals found to be in breach of its provisions, as exemplified in the notice issued to Helen Butteriss. Any person disqualified under the Act is prohibited from acting as a trustee, investment manager, custodian, or responsible officer of a superannuation entity, with serious penalties, including potential imprisonment, for non-compliance. The disqualification can be revoked under certain conditions, and affected individuals have the right to seek reconsideration of the decision within 21 days of receiving the notice.

Key Provisions

The notice of disqualification issued to Helen Butteriss under the Superannuation Industry (Supervision) Act 1993 (SISA) informs her that she has been disqualified from being a trustee or a responsible officer of a body corporate that is a trustee, of a superannuation entity. This disqualification is pursuant to subsection 126A(6) of the SISA, which mandates that such notices be given when a person is disqualified under subsection 126A(1) and 126A(3) of the same Act. The notice specifies that the disqualification stems from Helen Butteriss contravening the SISA on multiple occasions, which, due to their seriousness, justify the disqualification. Additionally, the notice states that she is deemed unfit to hold such a position within a superannuation entity. The SISA imposes various obligations and requirements on individuals and entities it governs. For Helen Butteriss, these obligations include maintaining the standards of conduct and fitness necessary to be a trustee or responsible officer of a superannuation entity. The Act requires these individuals to comply with the provisions outlined to ensure the proper management and supervision of superannuation funds. Failure to meet these standards can result in disqualification as highlighted in the notice. Breaching the provisions of the SISA carries significant consequences, as stipulated under section 126K. Specifically, it is an offence for a disqualified person to act as, or be, a trustee, investment manager, or custodian of a superannuation entity or to be a responsible officer of a body corporate that holds such roles. The penalty for this offence includes a maximum imprisonment term of two years. Furthermore, subsection 126A(5) of the SISA allows for the revocation of such disqualification either by the Commissioner's initiative or upon a written application by the disqualified person. If Helen Butteriss is dissatisfied with the disqualification decision, she can request the Commissioner to reconsider it within 21 days of receiving the notice, as provided under section 344 of the SISA. This reconsideration request must be made in writing and outline the reasons for dissatisfaction with the decision.