Notice of Disqualification – Ian Butteriss - 16 May 2024

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Parliament of Australia to regulate and oversee the administration of superannuation funds in the country. The Act was introduced to address the need for a robust framework to protect the interests of superannuation fund members by ensuring that trustees, investment managers, and custodians act in their best interests. The SISA aims to maintain the integrity and stability of the superannuation industry by imposing obligations on trustees and other relevant entities and providing mechanisms for supervision and enforcement. This includes the power to disqualify individuals from performing certain roles if they are found to have contravened the provisions of the Act in a manner that warrants such action. The legislation underscores the importance of financial responsibility and ethical conduct within the superannuation sector to safeguard the retirement savings of Australians.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to trustees, investment managers, custodians, and responsible officers of superannuation entities. This includes individuals and entities that manage or oversee the financial affairs of superannuation funds. The Act's jurisdiction extends across the Commonwealth of Australia, thereby affecting entities and individuals engaged in superannuation activities nationwide. The legislation prohibits disqualified persons from acting as trustees, investment managers, or custodians of superannuation entities, or from being responsible officers of such entities, with a potential penalty of up to two years in jail for contravening these provisions. The Act allows for the disqualification of individuals who have breached its provisions, and such disqualifications are subject to publication in the Federal Register of Legislation. Disqualifications can be reviewed or revoked either by the Commissioner on their own initiative or upon application by the disqualified person.

Key Provisions

The notice of disqualification issued to Ian Butteriss under subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA) signifies that he has been disqualified from participating in the superannuation industry due to contraventions of the Act. This disqualification is effective from the date of the notice, as stated in subsection 126A(6). The decision to disqualify Mr. Butteriss is based on the delegate's satisfaction that his actions have contravened the SISA on one or more occasions, and the severity of these contraventions justifies the disqualification. The obligations imposed by the Act on entities like Ian Butteriss include compliance with the provisions of the SISA. Specifically, under section 126K, it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer or part of a body corporate that holds such roles. These roles are critical to the management and oversight of superannuation funds, and the Act ensures that only fit and proper persons are entrusted with these responsibilities. Failure to adhere to these obligations can lead to serious consequences, as outlined in the notice. For those who contravene the provisions of the SISA by acting in prohibited roles while disqualified, the penalties can be severe. As noted in Note 2, such an offence is punishable by up to two years in jail under section 126K. This underscores the importance of compliance with the Act's requirements and the significant repercussions for non-compliance. Additionally, under subsection 126A(5), the disqualification may be revoked either on the initiative of the delegate or upon a written application by the disqualified person. This provision offers a potential pathway for Mr. Butteriss to have his disqualification reconsidered, provided he meets the criteria for revocation. Furthermore, for those affected by the disqualification decision and dissatisfied with it, section 344 of the SISA provides a mechanism for reconsideration. A written request must be submitted to the Commissioner within 21 days of receiving the notice, detailing the reasons for the dissatisfaction. This ensures that there is a formal process for appeal and review, safeguarding against potential injustices in the application of the Act.