NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Kelton James Lord
COOGEE WA 6166
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(3) of the SISA.
I have disqualified you as I am satisfied that you are not a fit and proper person to be a trustee or a responsible officer of a body corporate that is a trustee, of a superannuation entity for the purposes of the SISA.
The disqualification takes effect on the day on which it is made.
Dated: 24 November 2016
James O'Halloran
Deputy Commissioner of Taxation
Per Bernard Morrison
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 superannuation industry, ensuring that trustees and responsible officers of superannuation entities are fit and proper persons. This legislation was introduced to address the problem of individuals who are unfit to manage superannuation funds, thereby protecting the interests of superannuation fund members. The Act is overseen by the Australian Parliament and aims to maintain the integrity and stability of the superannuation system by enforcing strict standards on the conduct and suitability of trustees and responsible officers. The disqualification of an individual under the Act is a significant measure intended to uphold these standards, with penalties for non-compliance including potential imprisonment and substantial fines.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the supervision and administration of superannuation funds within Australia. This Act specifically targets those who are trustees or responsible officers of superannuation entities, ensuring that such individuals are fit and proper persons. The disqualification provisions of the SISA are designed to protect the interests of superannuation fund members by preventing individuals deemed unfit from holding positions of responsibility within superannuation entities. The geographic reach of the Act is national, applying across all states and territories of Australia, and it extends to all superannuation entities operating within the Commonwealth. The Act’s provisions can be extended or modified through subordinate instruments, allowing for flexibility in addressing emerging issues within the superannuation industry. Notably, there are no stated exclusions or thresholds in the Act itself, but the determination of a person's fitness is subject to the discretion of the delegate of the Commissioner of Taxation. The Act also provides for the publication of disqualification notices and outlines penalties for those who knowingly contravene the disqualification provisions.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) includes provisions that allow for the disqualification of individuals deemed unfit to act as trustees or responsible officers of superannuation entities. Section 126A(3) empowers a delegate of the Commissioner of Taxation to disqualify individuals under certain conditions, which in this case has been applied to Kelton James Lord. The notice of disqualification, as specified in section 126A(6), is provided to the individual, informing them that they have been disqualified from serving as a trustee or responsible officer due to concerns about their fitness and propriety. The disqualification becomes effective immediately upon issuance, as stipulated in the notice.
The Act imposes significant obligations on disqualified individuals, particularly under section 126K. Once disqualified, an individual is legally prohibited from acting as a trustee, investment manager, or custodian of a superannuation entity, or serving as a responsible officer for such entities. This prohibition is intended to protect the integrity and management of superannuation funds. The obligations are clear and stringent, leaving no room for ambiguity regarding the scope of the disqualification.
Failure to comply with these obligations can result in serious consequences. Section 126K establishes that knowingly continuing to act in any capacity prohibited by the disqualification is an offence. The maximum penalty for this offence is a two-year imprisonment term, underscoring the seriousness with which the law treats breaches of the disqualification order. This severe penalty reflects the importance of maintaining high standards of conduct and propriety within the superannuation industry.