Notice of Disqualification – Johanna Liberiou

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide a regulatory framework for the supervision of superannuation trustees, thereby protecting the interests of superannuation fund members. This legislation was introduced to address the need for effective oversight and regulation within the superannuation industry, ensuring that trustees act in the best interests of fund members. Enacted by the Australian Parliament, the policy objective of the SISA is to safeguard the financial well-being of superannuation fund members by imposing obligations on trustees and regulating their conduct. The Act includes provisions for disqualifying individuals who have acted in a manner that is inconsistent with their responsibilities as trustees, as evidenced by the recent disqualification of Johanna Liberiou under subsection 126A(2) of the Act. This disqualification was issued by Emma Rosenzweig, a delegate of the Commissioner of Taxation, following a determination that the corporate trustee of one or more superannuation entities contravened the SISA, with Liberiou being a responsible officer at the time of the contraventions.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation entities, including trustees, investment managers, custodians, and responsible officers of corporate trustees. The Act is of Commonwealth jurisdiction, thereby extending its reach across Australia. The legislation aims to ensure the integrity and proper functioning of the superannuation industry by setting standards for conduct and management. The disqualification provisions of the Act allow for the removal of individuals from their positions if they are found to have contravened the Act, particularly if their actions are deemed serious enough to warrant such a measure. This disqualification prohibits the disqualified person from acting in any capacity within a superannuation entity, including as a trustee, investment manager, custodian, or responsible officer. The disqualification can be revoked either by the authority that imposed it or upon application by the disqualified person. Notably, the Act also includes provisions for the publication of disqualification notices and penalties for those who continue to act in contravention of the disqualification order.

Key Provisions

The main provisions of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to this disqualification notice are sections 126A and 126K. Section 126A(2) allows a delegate of the Commissioner of Taxation to disqualify a person from performing certain roles in relation to superannuation entities if they are satisfied that the corporate trustee has contravened the SISA and the person was a responsible officer at the time. Section 126A(7) requires the delegate to publish details of the disqualification in the Commonwealth Government Notices Gazette. Section 126K makes it an offence for a disqualified person to act as a trustee, investment manager, custodian, responsible officer or body corporate that is a trustee, investment manager or custodian of a superannuation entity, with a maximum penalty of two years imprisonment. The Act imposes obligations on responsible officers of corporate trustees of superannuation entities to ensure compliance with the SISA. If the corporate trustee contravenes the Act, the responsible officer is liable to be disqualified from performing certain roles. The disqualification takes effect immediately and will be published in the Gazette. Breaching section 126K of the Act by acting as a disqualified person in relation to a superannuation entity is an offence, with a maximum penalty of two years imprisonment. The delegate may revoke the disqualification on their own initiative or on a written application by the disqualified person. If dissatisfied with the disqualification, the person may request the Commissioner to reconsider the decision in writing within 21 days, giving reasons why the decision is wrong.