NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Howard Symington
SYDNEY NSW 2001
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(2) of the SIS Act as I am satisfied that the corporate trustee has contravened the SIS Act on one or more occasions, and at the time of the contraventions you were a responsible officer of the corporate trustee and the nature and seriousness of the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 26 September 2013
Ivan Parrett
Assistant Commissioner of Taxation
Per Theo Saltis
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 by the Australian Parliament to address the need for effective supervision and regulation of the superannuation industry, ensuring the protection of superannuation funds and the interests of members. The Act was introduced to fill the gap in comprehensive regulation of superannuation entities, trustees, and related activities, aiming to maintain the integrity and stability of the superannuation system. The SIS Act provides a framework for the oversight and management of superannuation funds, including the imposition of disqualification orders against individuals who have acted in a manner that warrants such action to protect the superannuation system. The policy objective of the Act is to safeguard the interests of superannuation members by ensuring that those managing superannuation funds do so with integrity and in compliance with the law.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to individuals and entities involved in the supervision of superannuation funds, including trustees, investment managers, and custodians of superannuation entities. The Act extends to the Commonwealth of Australia and provides for the regulation and oversight of superannuation funds to protect the interests of fund members. The disqualification of individuals such as Howard Symington, who are found to have contravened the provisions of the SIS Act, is a key mechanism for enforcing compliance. The decision to disqualify a person from being a trustee or responsible officer of a corporate trustee is made by a delegate of the Commissioner of Taxation when it is determined that there has been a contravention of the SIS Act, and the nature and seriousness of the contravention justifies such action. The disqualification is immediate upon the issuance of the notice and can be subject to reconsideration by the Commissioner or revocation by the delegate. Publication of particulars of the disqualification in the Gazette ensures transparency and public notification of such actions.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SIS Act) includes a provision under section 126A that allows for the disqualification of individuals from being trustees or responsible officers of certain superannuation entities. In this case, Ivan Parrett, a delegate of the Commissioner of Taxation, has issued a notice to Howard Symington stating that he has been disqualified from such roles due to the corporate trustee's contravention of the SIS Act while Symington was a responsible officer. This disqualification is based on the seriousness of the contraventions and the grounds they provide for such action. The disqualification order takes immediate effect as of the date of the notice, which is 26 September 2013.
Under the SIS Act, the obligations placed on individuals such as Howard Symington include adhering to the provisions of the Act to ensure the proper management and supervision of superannuation entities. As a responsible officer, Symington had a duty to ensure compliance with the Act, and failure to do so has led to his disqualification. The Act mandates that responsible officers and trustees must act in the best interests of the superannuation entity and its members, and any breach of this duty can result in severe consequences, including disqualification.
Breaches of the SIS Act can result in significant consequences. The disqualification of an individual from being a trustee or responsible officer is a primary punitive measure under the Act. Additionally, section 126A(7) of the SIS Act mandates that particulars of such disqualification notices be published in the Gazette, ensuring transparency and public accountability. There are also provisions under section 344 of the SIS Act that allow for the reconsideration of the decision if the affected party is dissatisfied, provided the request is made in writing within 21 days of receiving the notice. While the Act does not explicitly state financial penalties for such breaches, the disqualification itself is a substantial penalty, reflecting the seriousness of the contraventions.