NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mary Koutras
NOBLE PARK NORTH VIC 3174
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(2) of the SISA.
I have disqualified you as I am satisfied that the corporate trustee of one or more superannuation entities has contravened the SISA on one or more occasions, and at the time of the contraventions you were a responsible officer of the corporate trustee and the seriousness and the number of the contraventions provides grounds for disqualifying you.
The disqualification takes effect on the day on which it is made.
Dated: 5 April 2017
James O'Halloran
Deputy Commissioner of Taxation
Per Michael Lazzaroni
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 by the Commonwealth Parliament to address issues within the administration of superannuation funds, ensuring their proper management and protection of members' interests. This Act was introduced to fill a critical gap in the regulation of the superannuation industry, providing a framework for oversight and enforcement to maintain the integrity of the system. The Act's policy objective is to safeguard the superannuation industry by regulating trustees, ensuring compliance with legislative requirements, and providing mechanisms for disqualification of individuals who are unfit to manage superannuation entities. The Act empowers the Commissioner of Taxation to disqualify individuals who have been responsible officers of corporate trustees contravening the Act's provisions, thus maintaining the trust and confidence of superannuation fund members.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the management and operation of superannuation entities within Australia. Specifically, it targets responsible officers of corporate trustees and other persons who act as trustees, investment managers, or custodians of superannuation entities. The Act’s jurisdiction is national, applying across the Commonwealth of Australia, including all states and territories. The Act includes provisions for disqualifying individuals who have been responsible officers of corporate trustees that have contravened the Act, particularly if the contraventions are serious and numerous. Disqualification under the Act prohibits the disqualified person from acting in any capacity as a trustee, investment manager, or custodian of a superannuation entity, with a potential penalty of up to two years in jail for those who contravene this prohibition. The Act also allows for the revocation of disqualifications and provides a process for reconsideration of disqualification decisions by the Commissioner. The scope of the Act extends through subordinate instruments that may further define the conditions and implications of disqualification and contravention penalties.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) outlines key provisions for the regulation of superannuation entities. Specifically, section 126A(2) of the SISA allows for the disqualification of individuals from acting as trustees, investment managers, or custodians of superannuation entities if they were responsible officers of a corporate trustee at the time of significant contraventions of the Act. Section 126A(6) requires that a written notice of disqualification be provided to the individual concerned, as seen in the notice given to Mary Koutras. The disqualification takes immediate effect upon issuance of the notice, as stated in the document.
Under this legislation, the obligations on individuals and entities are stringent. Those who have been disqualified, such as Mary Koutras, are prohibited from acting in any capacity that involves managing or overseeing superannuation entities. This includes being a trustee, an investment manager, a custodian, or a responsible officer of any body corporate that performs these roles. Non-compliance with these obligations is not only a breach of the Act but also an offence under section 126K of the SISA.
The Act also delineates severe consequences for breaches of these provisions. If a disqualified person knowingly continues to act in a capacity prohibited by the Act, they commit an offence. The maximum penalty for such an offence is two years imprisonment, as stipulated in Note 2. This severe penalty underscores the importance of adhering to the provisions of the SISA. Furthermore, Note 3 explains that the disqualification can be revoked either on the initiative of the Commissioner of Taxation or upon a written application by the disqualified person. Additionally, Note 4 provides recourse for those affected by the disqualification, allowing them to request a reconsideration of the decision within 21 days of receiving the notice. This request must be made in writing and must detail the reasons why the decision is believed to be incorrect.