Notice of Disqualification – Komang Stevens – 6 November 2023

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address issues related to the management and supervision of superannuation funds, ensuring compliance with legislative standards and protecting the interests of fund members. The Act was introduced by the Australian Parliament and aims to maintain the integrity and stability of the superannuation industry by regulating the conduct of trustees, investment managers, and custodians of superannuation entities. One significant problem the Act seeks to address is the prevention of misconduct and financial mismanagement within superannuation entities, thereby safeguarding the retirement savings of millions of Australians. The enactment of this legislation underscores the policy objective of fostering a secure and reliable superannuation system, which is critical for the long-term financial well-being of the nation’s workforce.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers of corporate trustees of superannuation entities, ensuring compliance with the legislation's provisions. In the instance of Komang Stevens, the Act was invoked to disqualify him due to contraventions by the corporate trustee of one or more superannuation entities, with the seriousness of these contraventions warranting such action. The disqualification is immediate upon issuance and restricts Stevens from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a corporate trustee, as per section 126K. The geographic reach of this Act is national, applying across Australia, and the disqualification notice will be published as a Notifiable Instrument in the Federal Register of Legislation under subsection 126A(7). The Act does not specify thresholds for disqualification but focuses on the seriousness of the contraventions, and it may be subject to revocation either on the initiative of the Commissioner or upon written application by the disqualified person. Additionally, the Act provides a mechanism for reconsideration of the decision by the Commissioner within 21 days of receiving the notice, as per section 344.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to this disqualification notice are subsection 126A(2) and subsection 126A(6). Subsection 126A(2) provides the grounds for disqualifying a person from being a responsible officer of a corporate trustee of a superannuation entity if the corporate trustee has contravened the SISA on one or more occasions and the seriousness of the contraventions justifies the disqualification. Subsection 126A(6) requires the delegate of the Commissioner of Taxation to give the disqualified person written notice of the disqualification. In this case, Komang Stevens has been disqualified under these provisions due to his involvement with a corporate trustee that has contravened the SISA. The Act imposes specific obligations and requirements on parties and entities it governs. In this instance, it requires responsible officers of corporate trustees to ensure compliance with the SISA to avoid potential disqualification. Additionally, the Act mandates that the delegate of the Commissioner of Taxation must provide written notice to the disqualified person, as outlined in subsection 126A(6). This notice must detail the reasons for the disqualification and inform the individual of their rights to request reconsideration of the decision or seek revocation of the disqualification. Breaching the provisions of the SISA by acting as a trustee, investment manager, or custodian of a superannuation entity while being a disqualified person constitutes an offence. As stated in section 126K of the SISA, such an offence carries a maximum penalty of two years imprisonment. This underscores the seriousness with which the Act treats non-compliance and the importance of adhering to the stipulated requirements to avoid criminal consequences. Additionally, the Act allows for the disqualification to be revoked under certain conditions. According to subsection 126A(5) of the SISA, the disqualification may be revoked either on the initiative of the delegate of the Commissioner of Taxation or upon a written application by the disqualified person. This provides a potential pathway for Komang Stevens to have the disqualification lifted if he meets the criteria for revocation. Furthermore, section 344 of the SISA provides a mechanism for reconsideration of the decision by the Commissioner if the disqualified person is not satisfied with the outcome. This process must be initiated in writing within 21 days of receiving the notice of disqualification and must include the reasons for the dissatisfaction.