NOTICE OF DISQUALIFICATION – JOEL MALONE
Superannuation Industry (Supervision) Act 1993
To:
Joel Malone
Rockhampton QLD 4700
I, Emma Rosenzweig, 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 disqualified you under subsection 126A(1) of the SISA.
I have disqualified you as I am satisfied that you have contravened the SISA on one or more occasions and the seriousness of the contraventions provides grounds for disqualifying you.
The disqualification takes effect on the day on which it is made.
Dated: 22 August 2022
Emma Rosenzweig
Deputy Commissioner of Taxation
Per Jaq McDougall
Note 1:
Under subsection 126A(7) of the SISA, details of this disqualification notice will be published in the Commonwealth Government Notices Gazette.
Note 2:
Under section 126K of the SISA, it is an offence for a disqualified person, who knows that he or she is a disqualified person, to be, or act as a:
› trustee, investment manager or custodian of a superannuation entity
› responsible officer or a body corporate that is a trustee, investment manager or custodian, of a superannuation entity
The maximum penalty for committing this offence is two years jail.
Note 3:
Under subsection 126A(5) of the SISA, we may revoke this disqualification on our own initiative or on your written application.
Note 4:
Under section 344 of the SISA, if you are affected by this decision and are not satisfied with it, you can ask the Commissioner to reconsider the decision. This request must be made in writing within 21 days of receiving notice of this decision and must give the reasons you think the decision is wrong.
Overview
The Superannuation Industry (Supervision) Act 1993 was enacted to regulate the operations of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members by ensuring their retirement savings are managed responsibly. This legislation was introduced to address the need for a robust regulatory framework governing the supervision and administration of superannuation funds, aiming to mitigate risks and ensure the financial security of retirement savings. The Act was enacted by the Parliament of Australia, with the policy objective of safeguarding the superannuation industry's integrity and the welfare of superannuation fund members. The notice of disqualification under this Act serves as a mechanism to enforce compliance and deter misconduct within the superannuation sector, thereby upholding the Act's objectives.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management, operation, or administration of superannuation funds in Australia. This includes trustees, investment managers, custodians, and responsible officers of superannuation entities. The Act is a Commonwealth legislation, thus its jurisdiction extends across the entire nation, providing a uniform regulatory framework for superannuation funds. The Act’s reach includes all superannuation funds, regardless of their size or the location of their operations within Australia. However, the Act may extend or restrict its application through subordinate instruments, such as regulations or codes of practice, which can provide further details on specific aspects of superannuation fund management. The Act does not specify any exclusions or exemptions based on the size or type of the superannuation entity, implying that it applies broadly to all relevant entities. The serious contravention of the Act’s provisions can lead to disqualification of individuals from managing superannuation funds, as evidenced by the disqualification notice issued to Joel Malone.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) contains several key provisions concerning the disqualification of individuals from involvement in superannuation entities. Section 126A(1) of the Act empowers a delegate of the Commissioner of Taxation to disqualify individuals who have contravened the SISA on one or more occasions, provided that the seriousness of the contraventions warrants such a decision. This disqualification is immediate upon issuance, as stated in subsection 126A(6), and is communicated to the individual via a formal notice, as demonstrated in the notice given to Joel Malone.
The Act imposes clear obligations on disqualified individuals, notably prohibiting them from acting as trustees, investment managers, custodians, responsible officers, or body corporates of superannuation entities. Any person who knowingly contravenes this prohibition, as outlined in section 126K, commits an offence. This offence carries a maximum penalty of two years imprisonment, highlighting the seriousness with which the Act treats breaches of these provisions.
Under subsection 126A(5) of the SISA, the disqualification can be revoked either by the delegate of the Commissioner of Taxation on their own initiative or upon a written application by the disqualified individual. This provision provides a potential pathway for individuals to seek reinstatement after demonstrating compliance with the law or rectifying the issues that led to their disqualification. Additionally, section 344 of the SISA allows for the reconsideration of a disqualification decision. An individual who is dissatisfied with the decision can request a review by the Commissioner in writing within 21 days of receiving notice. This request must detail the reasons for dissatisfaction with the original decision.
The legal consequences of contravening the SISA’s provisions are significant. Not only does disqualification prevent individuals from participating in the management of superannuation funds, but the associated offence of acting in a prohibited capacity carries a substantial penalty. This reinforces the importance of adhering to the Act’s requirements to avoid severe legal repercussions.