Notice of Disqualification - Mr Philip May

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to provide a regulatory framework for the supervision of superannuation entities, aiming to protect the interests of superannuation fund members and beneficiaries. This Act addresses the problem of ensuring the integrity and competence of individuals and entities managing superannuation funds. The enactment of the Act was overseen by the Parliament of Australia, with the policy objective of maintaining the financial stability and proper management of superannuation funds. The legislation empowers the Commissioner of Taxation to disqualify individuals from holding certain positions within superannuation entities if they are found to have contravened the provisions of the Act. This notice to Mr Phillip G May is a specific application of the Act, where he has been disqualified from being a trustee or a responsible officer due to breaches of the Act, highlighting the regulatory body’s commitment to upholding the standards within the superannuation industry.

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 has a Commonwealth reach, impacting those within Australia's jurisdiction. The disqualification order under subsection 126A(1) of the SIS Act targets persons who have contravened the Act, with the decision to disqualify being based on the nature, seriousness, and number of such contraventions. This order applies to Mr. Phillip G May, who is disqualified from serving as a trustee or responsible officer of a body corporate managing superannuation entities. The order is effective from the date of notice, 22 April 2015, and details of this disqualification will be published in the Gazette as per subsection 126A(7). Additionally, the order can be revoked either by the authority itself or upon a written application by the disqualified person. For those dissatisfied with the decision, there is a provision under section 344 of the SIS Act to request a reconsideration from the Commissioner within 21 days of receiving the notice, outlining the reasons for the request.

Key Provisions

The notice provided under the Superannuation Industry (Supervision) Act 1993 (SIS Act) informs Mr Phillip G May that he has been disqualified from acting as a trustee or responsible officer of any body corporate involved in managing superannuation entities. This decision has been made by Alison Lendon, a delegate of the Commissioner of Taxation, and is based on subsection 126A(6) of the SIS Act. The disqualification arises from Mr May's contraventions of the SIS Act, which have been deemed serious enough to warrant such action under subsection 126A(1). The disqualification order is effective from the date the notice was issued, which is 22 April 2015. Under the SIS Act, the disqualified individual, Mr May, now faces certain obligations and restrictions. He is prohibited from engaging in any activities that would allow him to be a trustee or responsible officer of any body corporate involved in superannuation management. This includes being directly involved in the management of funds or decision-making processes that govern superannuation entities. The disqualification is intended to protect the interests of superannuation fund members by ensuring that those who have previously contravened the Act do not hold positions of responsibility within the superannuation industry. Failure to comply with the disqualification order can result in various legal consequences. Although the notice does not specify particular offences or penalties, general provisions of the SIS Act provide for potential criminal and civil penalties. For example, breaches of the Act can lead to substantial fines and imprisonment, with the exact penalties depending on the nature and severity of the contravention. Additionally, the disqualification order itself is a significant penalty, effectively barring Mr May from participating in the management of superannuation entities. The notice also informs Mr May of his rights to seek reconsideration of the decision. According to section 344 of the SIS Act, he can request the Commissioner to review the disqualification order if he is dissatisfied with it. Such a request must be made in writing within 21 days from the date he received the notice and must include the reasons for the reconsideration. Furthermore, the notice mentions that the particulars of the disqualification will be published in the Gazette as per subsection 126A(7) of the SIS Act, and that the disqualification order may be revoked either on the initiative of the Commissioner or upon written application by Mr May.