NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mr John Douglas Davey
Bridport TAS 7262
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 number and seriousness of the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 10 October 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 issues within the administration and regulation of superannuation funds in Australia. The Act was introduced to ensure that superannuation entities are managed responsibly and that trustees, investment managers, and custodians adhere to stringent regulatory standards to protect the interests of superannuation fund members. The SISA provides the legislative framework necessary to supervise and regulate the superannuation industry, aiming to maintain the integrity and stability of the superannuation system. The Act was passed by the Australian Parliament with the policy objective of safeguarding the financial well-being of superannuation fund members by preventing mismanagement and misconduct within the industry. The notice of disqualification under the SISA signifies the enforcement of these regulatory standards, ensuring that individuals who fail to comply with the Act's provisions are held accountable.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and administration of superannuation entities within Australia. Specifically, the Act governs the conduct of trustees, investment managers, and custodians of superannuation entities, as well as responsible officers of corporate bodies performing these roles. This legislation is of national reach, applying across the Commonwealth of Australia and not limited to any particular state or territory. The Act imposes stringent standards and requirements designed to protect the interests of superannuation fund members, ensuring that those who manage these funds do so with integrity and in compliance with the law. The application of the Act is broad, targeting anyone directly involved in the administration of superannuation funds, and its provisions can be enforced through the issuance of disqualification notices for breaches. The Act also provides for the possibility of revocation of disqualification orders and allows for the reconsideration of decisions by the Commissioner.
Key Provisions
The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) involved in this disqualification notice include subsection 126A(6) (2), which mandates the provision of a notice of disqualification, and subsection 126A(1) (3), which allows for the disqualification of an individual from acting as a trustee, investment manager, custodian, or responsible officer of a superannuation entity if there are grounds for such action due to contraventions of the Act. The notice informs Mr John Douglas Davey that he has been disqualified from these roles because he has contravened the SISA on multiple occasions, with the severity of the breaches justifying his disqualification.
Under the Act, the obligations imposed on parties such as trustees, investment managers, custodians, and responsible officers of superannuation entities include strict compliance with the provisions of the SISA. These obligations encompass the proper management and administration of superannuation funds, adherence to investment and trustee standards, and ensuring that all activities related to superannuation entities are conducted in the best interests of the beneficiaries. The disqualification of Mr Davey signifies a failure to meet these obligations, leading to the enforcement action taken by the delegate of the Commissioner of Taxation.
Breaches of the SISA can lead to serious consequences. The Act stipulates that disqualification from roles within superannuation entities is a significant penalty in itself. Additionally, further offences or breaches of the Act may incur additional penalties, both civil and criminal. While the notice does not detail specific maximum penalties for the contraventions that led to Mr Davey's disqualification, the SISA includes provisions for fines and imprisonment for serious breaches. The severity of the penalties can vary depending on the nature and extent of the contraventions, with more egregious violations potentially leading to substantial financial penalties and/or imprisonment.