NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Michael Haar
LABRADOR QLD 4215
I, Alison Lendon, 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, seriousness and number of contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 11 June 2014.
Alison Lendon
Deputy Commissioner of Taxation
Per Kathryn Crawford
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 (SIS Act) was enacted to address issues and gaps within the regulation of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members and ensure the integrity of the superannuation system. The Act was enacted by the Australian Parliament, with the overarching policy objective of maintaining high standards of conduct and governance within the superannuation industry to safeguard the financial well-being of superannuation fund members. This legislative framework empowers the Commissioner of Taxation to disqualify individuals from serving as trustees or responsible officers of superannuation entities if they have contravened the provisions of the Act, ensuring accountability and adherence to regulatory standards within the industry.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to individuals and entities involved in the supervision and management of superannuation funds in Australia. Specifically, the Act governs the conduct of trustees, investment managers and custodians of superannuation entities, ensuring compliance with legal and regulatory standards designed to protect the interests of superannuation fund members. The Act’s application extends across the Commonwealth of Australia and encompasses a broad range of conduct and transactions related to superannuation funds. The notice of disqualification provided to Michael Haar exemplifies the Act's enforcement mechanism, targeting individuals who have breached the Act's provisions. The decision to disqualify an individual such as Haar from acting as a trustee or responsible officer is based on a determination that the nature, seriousness, and frequency of the contraventions justify such action. The disqualification order, which becomes effective on the date of the notice, is detailed in the Gazette as per the requirements of the Act. The Act also provides avenues for reconsideration and potential revocation of the disqualification order, allowing for procedural fairness and the opportunity for individuals to contest the decision.
Key Provisions
The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SIS Act) relevant to this notice are subsection 126A(1), which allows for the disqualification of individuals from serving as trustees or responsible officers of superannuation entities, and subsection 126A(6), which requires the Commissioner of Taxation or their delegate to provide notice of such a decision. The notice to Michael Haar (paragraph 1) specifies that he has been disqualified from being a trustee or a responsible officer due to contraventions of the SIS Act, the nature and seriousness of which justify the disqualification.
The obligations and requirements imposed by the SIS Act on Michael Haar, as well as other trustees and responsible officers, include adhering to the standards set forth in the Act, ensuring compliance with all relevant regulations, and acting in the best interests of the superannuation fund members. Subsection 126A(1) specifically mandates that trustees and responsible officers maintain high standards of conduct and governance, and failure to do so may result in disqualification. The notice to Michael Haar highlights a breach of these obligations, leading to his immediate disqualification from any role that requires oversight of superannuation entities.
Breaches of the SIS Act can result in severe penalties, both civil and criminal. Under the SIS Act, individuals found to have contravened its provisions can face significant financial penalties, including fines up to $126,000 for individuals and substantially higher amounts for bodies corporate. Additionally, criminal offences can lead to imprisonment, with maximum penalties varying depending on the specific nature of the contravention. The disqualification itself is a significant consequence, barring the individual from participating in the management of superannuation entities, which can have long-lasting professional and financial implications.