NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
IAN ALLAN
NORTHAM WA 6401
I, Alison Lendon, a delegate of the Commissioner of Taxation, give you notice as required by subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA), that I have made a decision to disqualify you from being, or acting as:
a trustee, investment manager or custodian of a superannuation entity
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 SISA as I am satisfied that you have contravened the SISA 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: 17 December 2014
Alison Lendon
Deputy Commissioner of Taxation
Per Michael Lazzaroni
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 (SISA) was enacted by the Australian Parliament to address the need for greater regulation and oversight of the superannuation industry. The Act aims to ensure the proper management of superannuation funds and to protect the interests of superannuation fund members. The 1993 Act was introduced to fill a legislative gap concerning the supervision and regulation of the superannuation industry, which had been growing significantly in terms of assets under management and the number of participants. By establishing a framework for the regulation of trustees, investment managers, and custodians, the SISA seeks to maintain the integrity and stability of the superannuation system. This was done to protect the retirement savings of Australians and to foster confidence in the superannuation industry. The Act provides the Commissioner of Taxation with the authority to disqualify individuals from participating in the administration of superannuation funds if they have contravened the provisions of the Act, as evidenced in the disqualification notice issued under the authority of the SISA.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and administration of superannuation funds, including trustees, investment managers, and custodians. The Act is a Commonwealth statute, meaning its jurisdiction and reach are national, applying across all states and territories of Australia. The Act's primary aim is to regulate and supervise the superannuation industry to protect the interests of superannuation fund members. The disqualification process under the SISA, as illustrated in the notice to Ian Allan, is a mechanism to enforce compliance by preventing individuals found to have contravened the Act from continuing in their roles. The decision to disqualify is made by a delegate of the Commissioner of Taxation, who must be satisfied that the contraventions meet the specified grounds for disqualification. The disqualification is effective immediately upon the issuance of the notice, and provisions exist for potential revocation or reconsideration of the decision by the Commissioner. The notice also informs the disqualified individual of their rights to request a reconsideration within 21 days of receiving the notice, providing an opportunity to challenge the decision.
Key Provisions
The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) in this context are subsection 126A(6) and subsection 126A(1). Subsection 126A(6) mandates that the Commissioner of Taxation must provide a notice to the disqualified person, detailing the reasons for their disqualification and the effective date of the order. Subsection 126A(1) allows for the disqualification of a person from holding certain roles within a superannuation entity if there is a conviction or belief that the person has contravened the SISA. This disqualification is warranted when the nature, seriousness, and number of the contraventions provide sufficient grounds for such action.
The Act imposes specific obligations on entities and individuals involved with superannuation entities. Trustees, investment managers, custodians, and responsible officers of body corporates must adhere to the provisions of the SISA, ensuring that they do not engage in any conduct that would contravene the Act. These roles carry a responsibility to act in the best interest of the members of the superannuation funds they manage. Non-compliance with these obligations can lead to severe repercussions, including disqualification from managing any superannuation entity.
Breach of the SISA can result in significant consequences. Under the Act, the Commissioner of Taxation has the authority to disqualify individuals from holding certain positions within a superannuation entity, as seen in this notice. The penalties for such breaches are stringent, and the consequences of being found guilty of contravening the Act can include not only disqualification but also potential criminal charges. The maximum penalties for serious offences under the SISA can be substantial, including fines and imprisonment, depending on the severity of the contravention. Additionally, civil consequences may include compensation for losses incurred by the affected superannuation members.