NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Manel Hussein (the Trustee) of the Hussein Trust (the Fund)
GUILDFORD NSW 2161
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(1) of the SISA.
I have disqualified you as I am satisfied that you have 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: 17 March 2017
James O’Halloran
Deputy Commissioner of Taxation
Per Colleen Shelton
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 address the need for effective regulation and supervision of the superannuation industry in Australia, ensuring that trustees and other responsible persons act in the best interests of fund members. The SISA was introduced to tackle issues such as improper conduct, mismanagement, and breaches of fiduciary duties within the superannuation sector, ultimately aiming to protect the financial well-being of superannuation fund members. The Act was enacted by the Parliament of Australia, with the policy objective of establishing a robust regulatory framework to maintain confidence in the superannuation system. The notice of disqualification under the SISA, as illustrated in the example provided, serves to protect the integrity of the superannuation industry by preventing individuals found to have contravened the Act from participating in the management of superannuation funds.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the management and administration of superannuation funds within Australia. Specifically, the Act pertains to trustees, investment managers, custodians, and responsible officers of superannuation entities, ensuring compliance with regulatory standards to protect the interests of superannuation fund members. The Act's jurisdictional reach extends nationally, applying to all superannuation entities across the Commonwealth of Australia. It is an offence for a disqualified person to act in any capacity involving the management of a superannuation entity, with significant penalties including up to two years in jail. The Act also allows for the revocation of disqualification and provides a process for reconsideration of decisions by affected parties within 21 days of receiving notice.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) includes several key provisions related to the disqualification of individuals from participating in the superannuation industry. Section 126A(6) of the SISA mandates that a delegate of the Commissioner of Taxation must provide a notice of disqualification to the affected individual, as exemplified in the notice given to Manel Hussein. This section stipulates that the notice must clearly outline the reasons for the disqualification and inform the individual that they are disqualified due to contraventions of the SISA that warrant such action. The notice also informs the individual that the disqualification is effective immediately upon issuance.
Section 126A(1) of the SISA empowers the delegate of the Commissioner to disqualify individuals who have contravened the Act. The disqualification process requires the delegate to be satisfied that the contraventions are serious enough to justify such a measure. The notice must include details of the contraventions and the basis for the decision. Furthermore, under section 126K of the SISA, it is an offence for a disqualified person to continue acting as a trustee, investment manager, custodian, or responsible officer of a superannuation entity. This section imposes a significant obligation on disqualified individuals to cease all activities related to superannuation entities to avoid legal repercussions.
In terms of penalties and consequences, section 126K of the SISA specifies that knowingly continuing to act in a capacity that is prohibited for a disqualified person is a criminal offence. The maximum penalty for this offence is two years imprisonment. Additionally, subsection 126A(7) of the SISA requires that the details of the disqualification be published in the Commonwealth Government Notices Gazette, ensuring transparency and public awareness. The Act also provides for the possibility of revocation of the disqualification under subsection 126A(5), either on the initiative of the delegate or following a written application by the disqualified person. Finally, section 344 of the SISA allows for a request for reconsideration of the disqualification decision by the Commissioner within 21 days of receiving the notice, providing an opportunity for the individual to contest the decision.