NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mr Augustus Cezar Santos
ROSEWATER SA 5013
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(3) of the SISA as I am satisfied that you are not a fit and proper person to be a trustee, investment manager or custodian, or a responsible officer of a body corporate that is a trustee, investment manager or custodian, of a superannuation entity for the purposes of the SISA.
The disqualification order takes effect on the day on which this notice is made.
Dated: 24 December 2014
Alison Lendon
Deputy Commissioner of Taxation
Per Michael Grivell
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 effective regulation and supervision of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members and beneficiaries. This Act provides the legal framework for the Australian Prudential Regulation Authority (APRA) and the Australian Taxation Office (ATO) to supervise and regulate superannuation funds, trustees, investment managers, and custodians. The policy objective is to ensure that the superannuation industry operates in a fair, efficient, and transparent manner, safeguarding the financial wellbeing of participants. The Act empowers the ATO to disqualify individuals deemed unfit to manage superannuation entities, as illustrated in the disqualification notice issued to Mr Augustus Cezar Santos by Alison Lendon, a delegate of the Commissioner of Taxation. This notice, published in the Gazette, signifies the authority's commitment to maintaining the integrity and stability of the superannuation system.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and administration of superannuation funds, specifically targeting trustees, investment managers, and custodians of superannuation entities, as well as responsible officers of corporate bodies that perform these functions. The legislation extends its jurisdiction across Australia, thereby encompassing the entire Commonwealth, as well as state and territory jurisdictions. The Act aims to ensure that only fit and proper persons are entrusted with the responsibilities of managing superannuation funds, thereby protecting the interests of superannuation fund members. The disqualification process outlined in the Act, including the notice served to Mr Augustus Cezar Santos, is designed to prevent individuals deemed unfit from participating in the superannuation industry, thereby maintaining the integrity and stability of the sector. The Act provides mechanisms for the revocation of disqualification and the reconsideration of decisions, ensuring that affected parties have avenues to contest and appeal the decisions made by the Commissioner of Taxation.
Key Provisions
The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) in this context are sections 126A(3) and 126A(6). Section 126A(3) allows the delegate of the Commissioner of Taxation to disqualify a person from being a trustee, investment manager, or custodian of a superannuation entity, or a responsible officer of a body corporate involved in these roles, if they are deemed not to be a fit and proper person. Section 126A(6) mandates that the delegate must provide written notice of this disqualification to the affected individual. In this case, Mr Augustus Cezar Santos has been disqualified under these provisions.
The obligations imposed by the Act on the parties it governs include ensuring that all trustees, investment managers, custodians, and responsible officers of superannuation entities are fit and proper persons. This includes maintaining integrity, competence, and reliability in their roles to safeguard the interests of superannuation fund members. Mr Santos, having been found not to be a fit and proper person, is now disqualified from acting in any capacity that involves the management or oversight of superannuation funds.
Breaches of the requirements set out in the SISA can lead to significant consequences. If a disqualified person continues to act in a capacity for which they have been disqualified, they may be subject to civil or criminal penalties. The Act does not explicitly detail the penalties for continued actions post-disqualification in this particular notice, but it is understood that such actions can lead to substantial fines and even imprisonment. The seriousness of these potential consequences underscores the importance of adhering to the Act’s provisions regarding the fitness and propriety of individuals involved in superannuation management.