Notice of Disqualification - Michael Milne

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Parliament of Australia to provide a regulatory framework for the supervision of the superannuation industry, ensuring it operates in the best interests of its members. The Act addresses the problem of ensuring the integrity and proper management of superannuation funds by imposing regulatory requirements on trustees and other entities involved in the superannuation industry. One of the key provisions of the Act is the power to disqualify individuals from acting as trustees or responsible officers if they are found not to be fit and proper persons. This power was exercised in the notice to Mr. Michael Milne, a resident of St Clair, NSW, disqualifying him due to his involvement with a corporate trustee that contravened the Act on multiple occasions, and his failure to meet the standards required to manage superannuation entities responsibly. The policy objective underlying this disqualification is to maintain the integrity and reliability of the superannuation system by preventing unfit individuals from managing superannuation funds.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers and trustees of superannuation entities, which include industry and retail superannuation funds. The Act, which operates on a national level, aims to ensure the proper management and regulation of superannuation funds, safeguarding the interests of superannuation fund members. The geographic reach of the Act encompasses all of Australia, transcending state and territory boundaries to provide a uniform regulatory framework. The Act may extend or restrict its application through subordinate instruments, ensuring flexibility and precision in its implementation. Specific exclusions or exemptions are not outlined within the scope of this particular disqualification notice, but the Act does provide for various exclusions and exemptions in other contexts. The Act provides for disqualification of individuals deemed unfit to manage superannuation funds due to repeated or serious breaches of the Act, ensuring the integrity and stability of the superannuation system.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes provisions for disqualifying individuals from holding positions of responsibility within superannuation entities. Specifically, subsection 126A(2) and 126A(3) of the Act allow for the disqualification of individuals who, while serving as responsible officers of corporate trustees, have been involved in contraventions of the Act. In this instance, Mr Michael Milne has been disqualified by a delegate of the Commissioner of Taxation, James O'Halloran, because he was a responsible officer during instances where the corporate trustee contravened the Act, and the severity and frequency of these contraventions justified the disqualification. Furthermore, Mr Milne has been deemed not fit and proper to continue in his role due to the same reasons. Under the Act, Mr Milne is now prohibited from acting as a trustee, investment manager, or custodian of a superannuation entity, or serving as a responsible officer of any body corporate that undertakes these roles. This prohibition is intended to safeguard the interests of superannuation fund members and ensure compliance with the regulatory requirements set out in the SISA. The disqualification takes immediate effect from the date of the notice, which in this case is 17 November 2016. Failure to comply with this disqualification can lead to serious legal consequences. Section 126K of the SISA criminalises the act of a disqualified person knowingly acting in a prohibited capacity. A person found guilty of this offence faces a potential penalty of up to two years in jail. Additionally, the disqualification notice will be published in the Commonwealth Government Notices Gazette as per subsection 126A(7) of the Act, serving as a public record of Mr Milne's disqualification. There is also a provision for the disqualification to be revoked, either by the delegate on their own initiative or following a written application from Mr Milne as per subsection 126A(5) of the SISA. If Mr Milne is dissatisfied with the decision, he has the right to request a reconsideration from the Commissioner within 21 days of receiving the notice, as outlined in section 344 of the Act.