Notice of Disqualification - Michael Chevalier

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to regulate the superannuation industry, ensuring the protection of superannuation funds and their members. This legislation was introduced to address the need for stringent oversight and regulation of entities involved in the administration and management of superannuation funds to prevent misconduct and protect the interests of superannuation fund members. The Act is administered by the Parliament of Australia and its primary policy objective is to maintain the integrity and stability of the superannuation system. The Act empowers the Commissioner of Taxation to disqualify individuals deemed unfit to manage superannuation funds, thereby safeguarding the financial security of superannuation fund members. This specific disqualification notice serves to inform Mr Michael Chevalier that he has been disqualified from serving as a trustee or responsible officer of a body corporate involved in superannuation management due to a determination that he is not a fit and proper person for such roles under the Act.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the supervision and management of superannuation funds in Australia. Specifically, it applies to trustees, investment managers, custodians, and responsible officers of body corporates that are trustees, investment managers, or custodians of superannuation entities. The Act has a national reach, governing practices across the Commonwealth, states, and territories. The legislation includes provisions for disqualification of individuals deemed unfit to manage superannuation entities, as demonstrated by the notice to Mr Michael Chevalier. The Act may extend its application through subordinate instruments, which can provide further detail on the criteria for disqualification and the processes involved. The Act does not explicitly state exclusions, exemptions, or thresholds, but it does provide avenues for reconsideration and potential revocation of disqualification orders. The decision to disqualify an individual is communicated through official notices and may be subject to publication in the Gazette.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SIS Act) contains provisions for disqualifying individuals from holding certain roles in superannuation entities, specifically trustees, investment managers, custodians, or responsible officers of a body corporate that manages superannuation funds. Section 126A(6) of the SIS Act empowers a delegate of the Commissioner of Taxation to issue a notice of disqualification if they are satisfied that the individual is not a fit and proper person for such roles. In the case of Mr. Michael Chevalier, the delegate has issued such a notice under subsection 126A(3) of the SIS Act, stating that Mr. Chevalier is disqualified from these roles effective from the date of the notice, which is 5 December 2012. The obligations imposed on Mr. Chevalier by this disqualification notice are primarily to refrain from acting in any capacity as a trustee, investment manager, custodian, or responsible officer of any superannuation entity. This means he cannot participate in the management or administration of superannuation funds, which is a significant restriction given the trust and responsibility inherent in these roles. Additionally, Mr. Chevalier is informed that the details of this disqualification will be published in the Gazette as per subsection 126A(7) of the SIS Act, making it a matter of public record. Should Mr. Chevalier wish to challenge this disqualification, he has the right to request the Commissioner to reconsider the decision within 21 days of receiving the notice, as stipulated in section 344 of the SIS Act. This request must be made in writing and include the reasons for the reconsideration. Furthermore, the disqualification order can be revoked either by the delegate on their own initiative or following a written application by Mr. Chevalier, as outlined in subsection 126A(5) of the SIS Act. In terms of consequences for non-compliance, the SIS Act does not explicitly detail specific penalties in the notice itself, but failure to adhere to the disqualification order could lead to legal repercussions. Engaging in activities for which Mr. Chevalier has been disqualified could result in civil or criminal penalties, depending on the nature and severity of the breach. The exact penalties would be determined based on other relevant sections of the SIS Act or related legislation, but could include fines, imprisonment, or both, reflecting the seriousness of the misconduct or unfitness that led to the disqualification.