NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mr Paul Connelly
ASHGROVE QLD 4060
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: 11 June 2014
Alison Lendon
Deputy Commissioner of Taxation
Per Bernard Morrison
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 (SISA) was enacted to provide a regulatory framework for the supervision of superannuation entities in Australia, aiming to protect the interests of superannuation fund members by ensuring that trustees, investment managers, custodians, and responsible officers of these entities meet certain standards of competence and integrity. The Act was introduced to address the need for a comprehensive regulatory system to oversee the superannuation industry, which had been growing rapidly and was seen as requiring oversight to safeguard the financial security of millions of Australians. The policy objective of the SISA is to ensure the financial sustainability and integrity of the superannuation system, which is a cornerstone of Australia's retirement income framework. The legislation empowers the Commissioner of Taxation to disqualify individuals deemed unfit to manage superannuation funds, as exemplified by the disqualification notice issued to Mr Paul Connelly under subsection 126A(3) of the Act.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and administration of superannuation funds within Australia. The Act covers trustees, investment managers, custodians, and responsible officers of body corporates that engage in these roles. The legislation aims to ensure that these individuals and entities are fit and proper persons to handle superannuation funds, maintaining high standards of conduct and financial responsibility. The Act applies across the Commonwealth of Australia, with its provisions extending to all superannuation entities and their associated personnel. There are specific exclusions and exemptions provided by the Act; however, the disqualification order in question does not detail these. The Act's scope can be further defined or restricted through subordinate instruments, such as regulations or guidelines issued under the authority of the Act. The disqualification decision, as evidenced by the notice to Mr Paul Connelly, demonstrates the Act's enforcement mechanisms to uphold its standards.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) includes specific provisions for disqualifying individuals deemed unfit to manage superannuation entities. Under section 126A(6), a delegate of the Commissioner of Taxation, such as Alison Lendon, can disqualify an individual from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a body corporate involved in these roles. The disqualification is effective from the date the notice is made, as stated in the notice to Mr Paul Connelly.
The Act imposes specific obligations on individuals and entities involved in superannuation management. Section 126A(3) stipulates that a delegate must be satisfied that an individual is not a fit and proper person to hold certain roles within the superannuation industry. Once a disqualification order is made, it is binding and takes immediate effect, as noted in the notice to Mr Connelly. Furthermore, section 344 of the SISA allows affected individuals to request a reconsideration of the disqualification decision within 21 days of receiving the notice.
Non-compliance with the disqualification order can lead to various legal consequences. Under the SISA, the delegate's decision to disqualify an individual is final unless appealed. The Act does not explicitly outline criminal penalties for breach of the disqualification order, but it does provide avenues for reconsideration and potential revocation of the order. The disqualification can be revoked either by the delegate on their own initiative or upon written application by the disqualified person, as per section 126A(5). Additionally, if the disqualified individual continues to act in the prohibited capacity, they may face further legal action, although specific penalties for such actions are not detailed in the provided notice.