NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
MR PAUL NORDING
CAMPSIE NSW 2194
I, Ivan Parrett, 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 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: 21 January 2014
Ivan Parrett
Assistant Commissioner of Taxation
Per Gerard Carney
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 (SIS Act) was enacted to provide a comprehensive regulatory framework for the supervision of the superannuation industry in Australia, addressing the need for effective oversight and governance of superannuation entities to protect the interests of superannuation members. The Act was introduced by the Australian Parliament to ensure that the superannuation industry operates efficiently, transparently, and in the best interests of members. The policy objective of the SIS Act is to safeguard the financial wellbeing of superannuation members by enforcing compliance with the law, promoting the prudent management of superannuation funds, and ensuring that trustees and responsible officers act in the best interests of members. The Act empowers the Commissioner of Taxation to disqualify individuals from being trustees or responsible officers of superannuation entities if there are grounds for doing so, based on the nature and seriousness of any contraventions of the Act. This legislative action aims to maintain the integrity of the superannuation system and provide recourse for affected parties.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to individuals and entities involved in the management of superannuation entities, including trustees, investment managers, and custodians. The act imposes obligations on these entities to ensure compliance with the regulations governing superannuation funds, and it applies to the conduct and transactions related to these funds. The SIS Act has a national reach, applying across Australia, and it extends to both Commonwealth and state jurisdictions. The Act provides for the disqualification of individuals from serving as trustees or responsible officers if they are found to have contravened the Act's provisions, as demonstrated in the case of Mr. Paul Nording. The disqualification order can be revoked by the Commissioner of Taxation, either on their own initiative or in response to a written application from the affected individual. Additionally, the Act allows for reconsideration of the decision by the Commissioner if the affected person is dissatisfied with the outcome and submits a written request within 21 days of receiving notice of the decision, including the reasons for the request. The Act's application and enforcement may be extended or restricted through subordinate instruments as required.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SIS Act) contains several key provisions regarding the disqualification of individuals from holding certain roles within superannuation entities. Under section 126A(6) of the Act, a delegate of the Commissioner of Taxation can disqualify a person from being a trustee or responsible officer if they have contravened the Act. In this case, the notice provided to Mr. Paul Nording indicates that the delegate, Ivan Parrett, has disqualified him from these roles due to a conviction of breaching the SIS Act, with the decision taking effect immediately upon issuance of the notice on 21 January 2014.
The obligations imposed on individuals under the SIS Act are stringent, particularly for those in trustee or responsible officer positions. These individuals are expected to adhere to high standards of conduct and governance, ensuring that they comply with all regulatory requirements and act in the best interests of superannuation fund members. Failure to meet these obligations can result in serious consequences, including disqualification as evidenced by Mr. Nording’s case.
The SIS Act also outlines the potential offences and penalties for breaches. Under section 126A(1), disqualification is a significant sanction that can be applied when the nature and seriousness of the contraventions warrant such action. The Act does not specify particular monetary penalties for breaches leading to disqualification, but the civil and criminal consequences can be severe, including potential fines and imprisonment for more egregious breaches. Additionally, section 344 allows an affected person, such as Mr. Nording, to request reconsideration of the disqualification decision within 21 days of receiving notice, although this does not alter the immediate effect of the disqualification order.