Notice of Disqualification - Mr Mark Bertinshaw

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Parliament of Australia to address issues and ensure the proper regulation and supervision of superannuation funds. The Act was introduced to fill the gap in the oversight of superannuation entities, aiming to protect the interests of superannuation fund members by ensuring that trustees and responsible officers adhere to the necessary standards and regulations. In the case of Mr Mark Bertinshaw, the Act was applied by a delegate of the Commissioner of Taxation, Emma Rosenzweig, who disqualified him as a responsible officer due to contraventions by the corporate trustee of one or more superannuation entities under his supervision. The policy objective behind this disqualification is to maintain the integrity and proper functioning of the superannuation industry, ensuring that those responsible for managing superannuation funds meet the required standards and that contraventions are appropriately addressed.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to trustees of superannuation entities, including individuals and corporate trustees, and to the superannuation funds they manage. The Act's jurisdiction is national, extending to all superannuation entities within Australia, regardless of state or territory. It is designed to ensure the proper management and regulation of superannuation funds to protect the interests of members. The Act imposes obligations on trustees to manage funds prudently, provide members with information, and comply with reporting requirements. Exclusions or exemptions from the Act are limited and generally pertain to specific types of funds or circumstances as outlined in the legislation or related regulations. The Act's application can be extended or refined through subordinate instruments, such as regulations or determinations, which may specify additional details or conditions under which the Act operates. The notice of disqualification, as in the case of Mr Mark Bertinshaw, is issued when it is determined that a responsible officer has failed to meet the standards set by the SISA, leading to a prohibition from managing superannuation entities.

Key Provisions

The primary sections of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to the disqualification notice involve the authority of the Commissioner of Taxation to disqualify individuals from performing certain roles within superannuation entities. Specifically, subsection 126A(2) provides the grounds for disqualification, which includes instances where the corporate trustee of one or more superannuation entities has contravened the SISA and the individual in question was a responsible officer at the time of the contraventions. Subsection 126A(6) mandates that a notice of disqualification must be given in writing to the disqualified individual, as illustrated in the notice provided to Mr. Mark Bertinshaw. This disqualification takes immediate effect upon issuance, as per the notice's effective date. The Act imposes various obligations on individuals designated as responsible officers within corporate trustees of superannuation entities. These obligations include ensuring compliance with all provisions of the SISA, actively participating in the management and oversight of the superannuation entity, and reporting any contraventions to the relevant authorities. Failure to meet these obligations can lead to serious consequences, including disqualification from managing any superannuation entity. Mr. Mark Bertinshaw, as a responsible officer, would have been expected to uphold these standards and ensure that the corporate trustee adhered to the regulatory requirements of the SISA. In the event of a contravention of the SISA, the Act specifies certain offences and penalties. Disqualification, as notified to Mr. Bertinshaw, is one such consequence. While the notice does not specify financial penalties, other sections of the SISA provide for substantial fines and imprisonment for serious breaches. For example, under section 908, the maximum penalty for a serious contravention can be up to $210,000 for an individual or significantly higher for a corporation. Additionally, the Act includes provisions for civil penalties and legal action against both individuals and corporate trustees who fail to comply with its requirements, ensuring a robust framework for enforcement and accountability within the superannuation industry.