NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Lolovai Toilolo
HAMPTON PARK VIC 3976
I, Ivan Parrett, a delegate of the Commissioner of Taxation, give you notice as required by subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SIS Act), that I have made a decision to disqualify you from being a trustee or a responsible officer of a body corporate that is a trustee, investment manager or custodian, of a superannuation entity.
I have disqualified you under subsection 126A(1) of the SIS Act as I am satisfied that you have contravened the SIS Act on one or more occasions and the nature and seriousness of the contravention provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 17 June 2013
Ivan Parrett
Assistant Commissioner of Taxation
Note 1:
In accordance with subsection 126A(7) of the SIS Act, particulars of this disqualification notice will be published in the Gazette.
Note 2:
In accordance with subsection 126A(5) of the SIS Act, we may revoke this disqualification order on our own initiative or on written application made by you.
Note 3:
In accordance with section 344 of the SIS Act, if you are a person who is affected by this decision and you are dissatisfied with it, you may ask the Commissioner to reconsider this decision. Such a request must be made in writing within 21 days of the day on which you received notice of the decision and must also give the reasons for making the request.
Overview
The Superannuation Industry (Supervision) Act 1993 was enacted to provide a regulatory framework for the supervision of the superannuation industry in Australia. The Act was introduced to address issues and gaps in the governance and management of superannuation entities, aiming to protect the interests of superannuation fund members and beneficiaries by ensuring that trustees and responsible officers meet certain standards of conduct and competence. The policy objective of the Act is to maintain and improve the integrity and efficiency of the superannuation industry, ensuring that it operates in the best interests of those who rely on it for their retirement income. The Act was enacted by the Australian Parliament and provides the Commissioner of Taxation with the authority to disqualify individuals from holding positions of trust or responsibility within superannuation entities if they are found to have contravened the provisions of the Act. This legislative framework aims to uphold the integrity of the superannuation system by removing unfit individuals from roles where they could potentially cause harm to fund members.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to trustees, responsible officers, and other related entities within the superannuation industry. The Act imposes regulatory and compliance obligations on these individuals and entities, governing the management, investment, and administration of superannuation funds. The Act's jurisdiction extends across Australia, with the Commonwealth having overarching authority over superannuation regulation, but with some state and territory involvement in enforcement. The disqualification notice serves to restrict Lolovai Toilolo from serving as a trustee or a responsible officer of a body corporate involved in managing superannuation entities due to contraventions of the SIS Act. The application of the Act can be extended or restricted through subordinate instruments, enabling the regulation to adapt to evolving industry practices and compliance challenges. Exclusions or exemptions from the Act are generally limited, with the primary focus being on maintaining high standards of conduct and compliance within the superannuation sector.
Key Provisions
The notice of disqualification, issued under subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SIS Act), informs Lolovai Toilolo that they have been disqualified from serving as a trustee or a responsible officer of a body corporate that is a trustee, investment manager, or custodian of a superannuation entity. This disqualification was enacted due to the individual's contravention of the SIS Act, with the severity of the breach justifying such action. The order to disqualify Lolovai Toilolo takes effect immediately on the date the notice was issued.
Under the SIS Act, the Act imposes specific obligations on trustees and responsible officers to ensure compliance with superannuation regulations. These obligations include maintaining proper records, acting in the best interest of fund members, and adhering to the Act's guidelines. Failure to meet these obligations can lead to serious consequences, including disqualification as detailed in the notice. The Act also mandates that trustees and responsible officers must disclose any conflicts of interest and report any breaches of the Act to the relevant authorities.
Breaches of the SIS Act can result in both civil and criminal penalties. Civil penalties may include fines up to $21,000 for individuals and $105,000 for body corporates per contravention, as stipulated under section 126A of the Act. Additionally, criminal penalties can be imposed for more serious breaches, with maximum penalties reaching up to $126,000 for individuals and $630,000 for body corporates, or imprisonment for up to five years, or both, as outlined in section 126A. These penalties underscore the importance of compliance with the Act's provisions to avoid severe repercussions.