NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
MISS AUDDESSEY TIMOTI
ROTHWELL
QLD 4022
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 (SISA), that I have made a decision to disqualify you from being, or acting as:
a trustee, investment manager or custodian of a superannuation entity
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 SISA as I am satisfied that you have contravened the SISA on one or more occasions and the nature, seriousness and number of the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 23 May 2014
Alison Lendon
Deputy Commissioner of Taxation
Per Craig Blair
Note 1:
In accordance with subsection 126A(7) of the SISA, particulars of this disqualification notice will be published in the Gazette.
Note 2:
In accordance with subsection 126A(5) of the SISA, we may revoke this disqualification on our own initiative or on written application made by you.
Note 3:
In accordance with section 344 of the SISA, 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 after 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 (SISA) was enacted by the Parliament of Australia to address significant gaps in the regulation of the superannuation industry, aiming to ensure its proper administration and to protect the interests of superannuation fund members. The Act was designed to establish a framework that would enhance the governance, accountability, and performance of superannuation entities, thereby fostering trust and confidence in the superannuation system. The enactment of SISA was driven by a need to address issues such as poor performance, lack of accountability, and breaches of fiduciary duties within the superannuation sector. The policy objective of the Act is to safeguard the financial well-being of superannuation members by imposing stringent regulatory requirements on trustees, investment managers, and custodians of superannuation funds, and by empowering the Australian Prudential Regulation Authority (APRA) and the Commissioner of Taxation to enforce compliance and take disciplinary actions against non-compliance.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the supervision and management of superannuation entities, including trustees, investment managers, custodians, and responsible officers of corporate trustees, investment managers, or custodians. The Act operates on a national level, governing the entire superannuation industry within Australia. The Act's scope includes any contraventions that affect the financial integrity and management of superannuation funds, thus impacting a wide range of entities and persons engaged in this sector. The Act provides for disqualification of individuals found to have contravened its provisions in a manner deemed serious enough to warrant such action. The disqualification can be imposed under subsection 126A(1) of the SISA, and in this case, the decision to disqualify is effective immediately upon notification. The Act allows for the revocation of disqualifications, either by the delegate or upon application by the disqualified person, and also provides avenues for reconsideration of the decision by the Commissioner if the affected party is dissatisfied with the outcome.
Key Provisions
The notice issued under subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA) to Miss Audissey Timotirotherwell, QLD 4022, informs her that she has been disqualified from certain roles within the superannuation industry. Specifically, she is disqualified from being or acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a body corporate performing any of these roles (subsection 126A(1)). This decision has been made because it is believed that she has contravened the SISA on multiple occasions, with the nature, seriousness, and number of these contraventions warranting the disqualification.
The Act imposes several obligations on the individuals and entities it governs. Trustees, investment managers, and custodians of superannuation entities must comply with all provisions of the SISA to maintain their eligibility to serve in these roles. This includes adhering to duties of care, diligence, and loyalty, ensuring the proper management of superannuation funds, and maintaining proper records. Responsible officers of body corporates must ensure that their entities comply with the SISA, which includes overseeing the management and administration of superannuation entities and ensuring that the trustees, investment managers, and custodians adhere to their obligations.
Breaching the SISA can lead to serious consequences. Subsection 126A(1) of the SISA allows for disqualification from certain roles in the superannuation industry if the contraventions are deemed significant enough. While the notice does not specify penalties, contraventions of the SISA generally carry substantial penalties. For example, under section 126D, individuals found guilty of serious breaches can face fines of up to $100,000 or imprisonment for up to five years, or both. Additionally, corporate entities can be fined up to $500,000 for similar offences. The severity of the penalties reflects the importance of compliance with the SISA in protecting superannuation funds and beneficiaries.