NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mrs Karmene Zantuck
Carlton VIC 3053
I, James O'Halloran, 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(2) of the SISA.
I have disqualified you as I am satisfied that the corporate trustee of one or more superannuation entities has contravened the SISA on one or more occasions, and at the time of the contraventions you were a responsible officer of the corporate trustee and the seriousness of contraventions provides grounds for disqualifying you.
The disqualification takes effect on the day on which it is made.
Dated: 17 March 2017
James O'Halloran
Deputy Commissioner of Taxation
Per Michael Lazzaroni
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 (SISA) was enacted to provide a robust regulatory framework for the supervision of superannuation entities, aiming to ensure the protection and proper management of superannuation funds. The legislation was introduced to address the need for stringent oversight to prevent mismanagement, fraud, and abuse within the superannuation industry. The enacting body for this Act was the Australian Parliament, with a clear policy objective to safeguard the interests of superannuation fund members by establishing a comprehensive supervisory regime. The Act empowers the Commissioner of Taxation to disqualify individuals from being involved in the administration of superannuation entities if they are found to have engaged in conduct that warrants such action, thereby maintaining the integrity and reliability of the superannuation system.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers of corporate trustees managing superannuation entities, ensuring compliance with regulatory standards. The Act provides a mechanism to disqualify individuals from acting as responsible officers if they have been involved in serious contraventions of the Act while in that role. The Act's jurisdiction extends across the Commonwealth of Australia, and its provisions apply to entities and individuals engaged in the supervision and management of superannuation funds. Exclusions or exemptions are not explicitly detailed in the notice, but the Act's applicability is broad, covering a wide range of conduct and transactions within the superannuation industry. The Act's application may be further refined through subordinate instruments, which are not addressed in the notice. The disqualification imposed is immediate and carries significant penalties, including criminal sanctions for continued involvement in the specified roles post-disqualification.
Key Provisions
The notice of disqualification issued under subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA) informs Mrs Karmene Zantuck that she has been disqualified from acting in any capacity related to superannuation entities due to her prior role as a responsible officer of a corporate trustee that contravened the SISA. This disqualification arises from multiple breaches of the SISA by the corporate trustee, with the seriousness of these breaches justifying the action taken. The disqualification takes effect immediately upon the notice being issued.
Under the SISA, being a responsible officer of a corporate trustee involves various obligations, including compliance with the statutory requirements of the Act, ensuring the proper management of superannuation funds, and maintaining adequate records and disclosures as required by law. Mrs Zantuck's obligations, which she failed to meet, include adherence to these requirements to prevent and report any contraventions.
The SISA imposes criminal penalties for disqualified persons who knowingly act as trustees, investment managers, custodians, or responsible officers of superannuation entities. According to section 126K of the SISA, such conduct constitutes an offence with a maximum penalty of two years imprisonment. This legal framework is designed to deter and penalise those who, despite being disqualified, continue to engage in activities related to superannuation management.
Additionally, the notice mentions the possibility of disqualification revocation. Under subsection 126A(5) of the SISA, the disqualification can be revoked either on the initiative of the Commissioner of Taxation or following a written application by the disqualified person. This provision offers a pathway for reinstatement, subject to meeting certain conditions or demonstrating that the grounds for disqualification no longer apply. Furthermore, under section 344 of the SISA, Mrs Zantuck has the right to request a reconsideration of the decision if she believes it to be incorrect, provided that the request is made in writing within 21 days of receiving the notice and includes the reasons for her dissatisfaction.