NOTICE OF DISQUALIFICATION – KENNETH MERRIMAN – 21 February 2024
Superannuation Industry (Supervision) Act 1993
To:
Kenneth Merriman
Carina QLD 4152
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’ve disqualified you as I’m satisfied that you’ve 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: 21 February 2024
Emma Rosenzweig
Deputy Commissioner of Taxation
Per Nichola Wood-Smith
Note 1:
Under subsection 126A(7) of the SISA, details of this disqualification notice will be published as a Notifiable Instrument in the Federal Register of Legislation..
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 address issues within the superannuation industry, particularly to ensure the protection of superannuation funds and the interests of superannuation fund members. This legislation was introduced by the Australian Parliament to provide a regulatory framework that governs the operations of superannuation funds, including the disqualification of individuals who fail to comply with the stipulated standards. The policy objective of the Act is to maintain the integrity and proper functioning of the superannuation system, ensuring that trustees, investment managers, custodians, and other responsible officers act in the best interests of fund members. The Act empowers the Commissioner of Taxation to disqualify individuals found to have contravened the provisions of the SISA, with significant penalties for those who continue to act in a supervisory capacity while disqualified.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management of superannuation entities, including trustees, investment managers, custodians, and responsible officers of superannuation entities. The Act has a national reach as it is a Commonwealth legislation, applying across Australia. The disqualification notice issued under the Act to Kenneth Merriman exemplifies its application to individuals found to have contravened its provisions, particularly those who have engaged in conduct warranting such serious penalties as disqualification from managing superannuation entities. The Act extends its reach through subordinate instruments that may further define the specific activities or conduct that constitute contraventions. Notably, the Act does not explicitly state exclusions or thresholds for disqualification, suggesting that any contravention of its provisions could lead to such a penalty if deemed sufficiently serious by the relevant authorities. This notice also serves as a public record of the disqualification, ensuring transparency and accountability within the superannuation industry.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) provides a framework for the regulation of the superannuation industry in Australia. Section 126A(1) of the SISA allows the delegate of the Commissioner of Taxation to disqualify an individual if they believe that the individual has contravened the SISA to a degree that warrants such action. Section 126A(6) requires that notice of the disqualification must be provided to the individual, specifying the reasons for the disqualification. The notice must be dated and signed by a delegate of the Commissioner, as seen in the notice to Kenneth Merriman dated 21 February 2024. The disqualification becomes effective on the date of the notice.
The Act imposes specific obligations on disqualified individuals, prohibiting them from acting as trustees, investment managers, or custodians of superannuation entities, or from being responsible officers of bodies corporate that hold such roles. These obligations are outlined in section 126K of the SISA. Violation of these prohibitions constitutes an offence under the Act, with a potential penalty of up to two years in jail. The Act also provides a mechanism for the revocation of disqualification either on the initiative of the Commissioner or upon application by the disqualified person, as specified in subsection 126A(5).
In the event that an individual is dissatisfied with the disqualification decision, section 344 of the SISA provides a recourse. The individual must submit a written request for reconsideration to the Commissioner within 21 days of receiving the notice of disqualification. This request must articulate the reasons why the individual believes the decision to be incorrect. Additionally, subsection 126A(7) mandates that details of the disqualification notice will be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and public record of such actions.