Notice of Disqualification – Mr Steen Michael Locke

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Australian Parliament to address the need for stringent oversight and regulation of the superannuation industry. The legislation aims to ensure that superannuation entities are managed with integrity, thereby protecting the interests of superannuation fund members. The Act establishes the framework for the regulation of trustees, investment managers, and custodians of superannuation entities. One significant aspect of the SISA is its power to disqualify individuals who have acted in a manner that contravenes the Act's provisions, thereby preventing them from participating in the management of superannuation entities in the future. This legislative measure is designed to maintain the trust and confidence of the public in the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and corporate entities involved in the administration of superannuation entities in Australia. Specifically, it targets responsible officers of corporate trustees who may have contravened the provisions of the Act. The legislation has a national reach, as it is a Commonwealth Act and thus applies across all states and territories in Australia. The disqualification applies to Mr. Steen Michael Locke, who was a responsible officer of a corporate trustee contravening the SISA, leading to his disqualification. The Act's application extends through subordinate instruments, allowing the Commissioner of Taxation to disqualify individuals based on the seriousness of the contraventions. Furthermore, any disqualified person who knowingly acts in any capacity as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a body corporate that holds such a position, commits an offence under the Act, with a maximum penalty of two years imprisonment. The Act provides for the possibility of disqualification revocation and includes provisions for reconsideration of the decision by the Commissioner within a specified timeframe.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) provides for the disqualification of individuals from acting in certain roles within superannuation entities under specific conditions. In this case, subsection 126A(2) of the SISA allows for the disqualification of Mr Steen Michael Locke, as confirmed in subsection 126A(6). The disqualification is triggered when there is evidence that the corporate trustee of one or more superannuation entities has breached the SISA, and Mr Locke was a responsible officer at the time of the contraventions. The seriousness of the breaches must also justify the disqualification. The notice of disqualification, issued by Emma Rosenzweig, a delegate of the Commissioner of Taxation, specifies that Mr Locke has been disqualified, with the effect taking place on the day the notice is made. The SISA imposes obligations on individuals like Mr Locke who are responsible officers of corporate trustees. They are required to ensure that the trustee complies with the Act, including adhering to its various provisions that govern the administration, management, and operation of superannuation entities. Any failure to uphold these standards can lead to personal disqualification. Furthermore, section 126K of the SISA mandates that a disqualified person must not act as a trustee, investment manager, or custodian of a superannuation entity, nor be a responsible officer or part of a body corporate that serves in such roles. These obligations are designed to maintain the integrity and proper functioning of the superannuation industry. Breaches of these provisions can result in serious consequences. As per section 126K, it is an offence for a disqualified person to act in the prohibited capacities. The maximum penalty for this offence is two years imprisonment, reflecting the seriousness with which the law treats non-compliance. Additionally, the disqualification can be revoked either on the initiative of the authorities or upon a written application by the disqualified person, as per subsection 126A(5). This offers a potential pathway for Mr Locke to seek reinstatement should he meet the criteria for revocation. For those dissatisfied with the disqualification decision, section 344 provides a mechanism to request a reconsideration by the Commissioner within 21 days of receiving the notice.