NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mr Hung T Ly
Springvale South, VIC 3172
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 the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated 20 May 2014.
Alison Lendon
Deputy Commissioner of Taxation
Per Michael Grivell
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 was enacted to provide a comprehensive framework for the supervision and regulation of the superannuation industry in Australia. This legislation aims to protect the interests of superannuation fund members by ensuring that trustees and responsible officers act in their best interests. The Act addresses the problem of misconduct and mismanagement within superannuation entities by empowering the Commissioner of Taxation to disqualify individuals who contravene the Act's provisions. The Superannuation Industry (Supervision) Act 1993 was enacted by the Parliament of Australia, reflecting the Commonwealth's commitment to safeguarding retirement savings and promoting trust within the superannuation sector. The policy objective of the Act is to maintain the integrity of the superannuation system by ensuring that those entrusted with managing superannuation funds do so with the highest standards of probity and care.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to individuals and entities involved in the superannuation industry, specifically targeting trustees, investment managers, and custodians of superannuation entities. The Act imposes disqualifications on those who contravene its provisions, with the aim of ensuring the integrity and proper management of superannuation funds. The jurisdiction of the Act is national, as it is a Commonwealth Act, thereby extending its reach across all states and territories in Australia. The Act does not explicitly outline exclusions, but the disqualification process itself includes provisions for potential revocation and reconsideration of decisions. Subordinate instruments and regulations may further extend or restrict the application of the Act, providing additional mechanisms to manage and enforce compliance within the superannuation industry.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SIS Act) includes specific provisions for disqualification of individuals from certain roles within superannuation entities. Section 126A(6) mandates that a delegate of the Commissioner of Taxation must provide notice to the affected individual, such as Mr Hung T Ly in this case, when a decision to disqualify them has been made. This notice, as per subsection 126A(1), is issued when the delegate is satisfied that the individual has contravened the SIS Act, and the contraventions are of sufficient nature, seriousness, and number to warrant such action. The disqualification becomes effective on the date of the notice.
Under the SIS Act, being disqualified means that the individual is barred from serving as a trustee or a responsible officer of any body corporate that acts as a trustee, investment manager, or custodian of a superannuation entity. This restriction aims to ensure that entities managing superannuation funds are overseen by individuals who comply with the law, thereby protecting the interests of superannuation fund members. Additionally, as per subsection 126A(7), details of the disqualification are to be published in the Gazette to ensure transparency and public awareness.
The obligations imposed by the Act on the disqualified individual include refraining from engaging in any activities that would involve them in the management of superannuation entities. The individual must also comply with any conditions set by the Commissioner, such as submitting written applications for the revocation of the disqualification order, as permitted under subsection 126A(5). If Mr Hung T Ly is dissatisfied with the disqualification decision, he has the right to request the Commissioner to reconsider the decision in writing within 21 days of receiving the notice, as per section 344 of the SIS Act.
Failure to comply with the disqualification order can lead to significant consequences. Although specific offences and penalties are not detailed in the notice, breaches of the SIS Act can result in both civil and criminal penalties. The SIS Act allows for substantial fines and potential imprisonment for serious contraventions. The exact penalties can vary depending on the nature and severity of the breach, but they underscore the importance of adhering to the legislative requirements governing superannuation entities.