Notice of Disqualification – Julian Millman - 30 October 2024

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to address the need for stringent oversight and regulation of superannuation entities, aiming to protect the interests of superannuation fund members. The Act was passed by the Australian Parliament, with the overarching policy objective of ensuring the proper management and administration of superannuation funds. One of the key provisions of the Act is the ability to disqualify individuals who have acted in a manner that breaches the Act's provisions while holding a responsible position within a superannuation entity. This disqualification mechanism serves to uphold the integrity and accountability of the superannuation industry. In this context, the Act empowers the Commissioner of Taxation or their delegate to disqualify individuals who are responsible officers of a corporate trustee when the entity has contravened the Act, especially if the contraventions are serious enough to warrant such action. This legislative tool is crucial in maintaining the trust and confidence of superannuation fund members in the industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers of corporate trustees in the superannuation industry, ensuring compliance with the legislation's provisions. In the case of Julian Millman, the Commissioner of Taxation's delegate has disqualified him from acting as a trustee, investment manager, or custodian of a superannuation entity due to the corporate trustee's contraventions of the SISA while Millman was a responsible officer. The disqualification stems from the seriousness of these contraventions, which justifies such action. The legislation's application extends to all responsible officers within the superannuation industry across Australia, given that the Act is a Commonwealth statute. Furthermore, any disqualified person contravening the Act by continuing to act in these capacities commits an offence, which carries a penalty of up to two years in jail. This disqualification can be subject to revocation either by the Commissioner of Taxation or by a written application from the disqualified person. Additionally, affected individuals have the right to request a reconsideration of the decision within 21 days of receiving the notice.

Key Provisions

The primary operative sections of the notice of disqualification under the Superannuation Industry (Supervision) Act 1993 (SISA) include subsection 126A(2), which provides the basis for disqualifying a responsible officer, and subsection 126A(6), which mandates the giving of such a notice. In this case, Julian Millman has been disqualified by Emma Rosenzweig, a delegate of the Commissioner of Taxation, because of his role as a responsible officer of a corporate trustee that has contravened the SISA on multiple occasions. The disqualification takes effect on the date of the notice, which is 30 October 2024. Subsection 126A(7) also ensures that details of the disqualification are published as a Notifiable Instrument in the Federal Register of Legislation. The Act imposes several obligations and requirements on the parties it governs. It mandates that responsible officers of corporate trustees ensure compliance with the SISA to avoid potential disqualification. Furthermore, the Act requires that any contraventions by corporate trustees be reported, and it places the onus on the responsible officers to maintain oversight and adherence to the regulatory standards. Additionally, the Act requires that any disqualified person refrains from acting in roles such as trustee, investment manager, or custodian of a superannuation entity, as outlined in section 126K. Breaching the provisions of the SISA can result in serious consequences. According to section 126K, it is an offence for a disqualified person who is aware of their disqualification to act in any of the specified roles. The maximum penalty for committing this offence is two years imprisonment. Moreover, the disqualification can be revoked either on the initiative of the Commissioner or upon a written application by the disqualified person, as stipulated in subsection 126A(5). Those affected by the decision also have the right to request reconsideration by the Commissioner within 21 days of receiving the notice, as per section 344.