Notice of Disqualification – Mr Steven Barisic

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to provide for the regulation of superannuation funds, aiming to ensure the financial security of the superannuation system and protect the interests of superannuation fund members. The Act was introduced to address the need for comprehensive regulation of the superannuation industry to maintain trust and confidence in the system. Enacted by the Parliament of Australia, the Superannuation Industry (Supervision) Act 1993 established a framework for the supervision and regulation of the superannuation industry, including the establishment of the Australian Prudential Regulation Authority (APRA) to oversee the prudential regulation of superannuation funds. The policy objective of the Act is to ensure the financial stability of the superannuation system and protect the interests of members by regulating trustees, investment managers, and custodians of superannuation funds.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration of superannuation entities in Australia. This includes trustees, investment managers, custodians, responsible officers, and body corporates that are associated with superannuation entities. The act imposes obligations and restrictions on their conduct to ensure the proper management and protection of superannuation funds. The act's jurisdictional reach extends nationally, as it is a Commonwealth Act. The act does not explicitly state any exclusions or exemptions, but it does provide for various thresholds and conditions that must be met by those involved in the superannuation industry. Additionally, the act allows for the extension and restriction of its application through subordinate instruments, such as regulations and rules, which provide further detail on the specific requirements and obligations of those subject to the act. The disqualification provisions under the act are particularly stringent, as evidenced by the notice issued to Mr Steven Barisic, indicating the seriousness with which breaches of the act are treated.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) that are pertinent to this notice are sections 126A and 126K. Section 126A(2) allows for the disqualification of individuals who have contravened the SISA, particularly if the contraventions are serious enough to warrant such action. This disqualification is communicated through a formal notice, as required by section 126A(6), which in this instance was issued to Mr Steven Barisic by Emma Rosenzweig, a delegate of the Commissioner of Taxation. Section 126K establishes that it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer or a body corporate in such a role, if they are aware of their disqualified status. The Act imposes several obligations on the parties it governs. Primarily, trustees, investment managers, and custodians of superannuation entities must comply with the SISA to avoid disqualification. Those who are disqualified, such as Mr Steven Barisic, are legally prohibited from engaging in any capacity that involves the management or administration of superannuation funds. This obligation extends to ensuring that they do not act in any capacity that would allow them to influence or control the administration of a superannuation entity. Failure to adhere to these requirements can lead to disqualification and subsequent legal repercussions. Breach of the provisions outlined in section 126K of the SISA results in criminal penalties. If a disqualified person knowingly continues to act as a trustee, investment manager, or custodian of a superannuation entity, they commit an offence that is punishable by a maximum penalty of two years imprisonment. This severe penalty underscores the seriousness with which the Act treats non-compliance and the protection of superannuation funds. Additionally, under section 126A(7), details of the disqualification will be published in the Commonwealth Government Notices Gazette, which serves as a public record of the individual's disqualification. Section 344 of the SISA provides a mechanism for recourse if Mr Steven Barisic, or any other affected party, believes the disqualification decision is unjust. Within 21 days of receiving the notice, the affected individual can request the Commissioner to reconsider the decision. This reconsideration request must be made in writing and should outline the reasons why the decision is deemed incorrect. This provision ensures that there is a formal process for addressing grievances and potentially reversing the disqualification if new information or arguments are presented.