NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mr Andrew Demosthenous
EPPING VIC 3076
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 seriousness of the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 4 March 2015
Alison Lendon
Deputy Commissioner of Taxation
Per Paul Cipolla
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 to address the need for rigorous oversight and regulation of the superannuation industry in Australia. The Act aims to protect the interests of superannuation fund members by ensuring that entities involved in the management and administration of superannuation funds adhere to high standards of conduct and governance. The SISA is administered by the Australian Parliament and seeks to maintain the integrity and stability of the superannuation system by preventing misconduct and mismanagement within the industry. In this particular instance, the Act is being applied to disqualify an individual from participating in the management of superannuation entities due to breaches of the Act, reflecting the legislative intent to uphold the standards required for the effective supervision of superannuation activities.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation funds, including trustees, investment managers, and custodians, as well as responsible officers of corporate entities that perform these roles. This legislation has a national reach across Australia, providing a comprehensive framework for the regulation of the superannuation industry. The Act aims to ensure the proper management and investment of superannuation funds, thereby protecting the interests of fund members. The disqualification of an individual, as in the case of Mr Andrew Demosthenous, is a significant measure under the Act, triggered when the delegate of the Commissioner of Taxation is satisfied that there have been contraventions of the Act that warrant such action. The disqualification order, once issued, takes immediate effect and is published in the Gazette, ensuring transparency and public awareness of the decision. Furthermore, the Act allows for the potential revocation of the disqualification order either by the delegate on their own initiative or upon a written application from the disqualified person. Additionally, affected individuals have the right to request a reconsideration of the decision within 21 days of receiving the notice, providing a procedural safeguard against perceived injustices.
Key Provisions
The primary sections of the Superannuation Industry (Supervision) Act 1993 (SISA) that apply in this case include sections 126A(1) and 126A(6). Section 126A(1) allows for the disqualification of individuals who have contravened the SISA, particularly when the contraventions are serious enough to warrant such action. Section 126A(6) mandates that a written notice of the disqualification must be provided to the affected individual, specifying the grounds for the disqualification. The notice also informs the individual that their disqualification becomes effective on the date of the notice.
Under the SISA, certain obligations are imposed on trustees, investment managers, and custodians of superannuation entities. These roles require compliance with the SISA's various provisions, including those related to the proper management and administration of superannuation funds. The Act also imposes duties on responsible officers of body corporates acting in these capacities, requiring them to adhere to the Act's standards and regulations. Failure to meet these obligations can result in the Commissioner taking action, including the issuance of a disqualification notice.
The Act provides for several consequences in the event of a breach. Section 126A(1) explicitly allows for the disqualification of individuals found to have contravened the SISA, as demonstrated in the notice to Mr Andrew Demosthenous. The notice specifies that the disqualification is effective immediately upon issuance. Additionally, subsection 126A(7) mandates that particulars of the disqualification will be published in the Gazette, ensuring transparency and public notification. The Act also allows for the revocation of the disqualification under certain conditions, as outlined in subsection 126A(5), and provides a mechanism for reconsideration of the decision by the Commissioner, as stated in section 344.