Notice of Disqualification – Mr Steven Vasilevski - 24 May 2024

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Parliament of Australia to provide for the supervision of the superannuation industry and to ensure that superannuation entities are managed in the best interests of their members. This legislation was introduced to address the problem of ensuring compliance within the superannuation sector and protecting the interests of superannuation fund members by preventing individuals with a history of serious contraventions from holding responsible positions within superannuation entities. The SISA aims to maintain the integrity and stability of the superannuation system by disqualifying individuals who have acted in a manner that demonstrates unfitness to hold such roles. The notice of disqualification to Mr Steven Vasilevski, issued by a delegate of the Commissioner of Taxation, is a direct application of the SISA's provisions to ensure that responsible officers who have facilitated serious breaches are held accountable. This disqualification reflects the policy objective of the Act to safeguard the superannuation industry and its participants.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration of superannuation funds in Australia. Specifically, the Act targets responsible officers of corporate trustees of superannuation entities, imposing obligations and restrictions on their conduct to safeguard the interests of superannuation fund members. The jurisdictional reach of the SISA is national, applying across all states and territories of Australia as a Commonwealth Act. The legislation seeks to maintain the integrity and stability of the superannuation system by ensuring compliance with regulatory standards through various provisions, including the power to disqualify individuals who have breached the Act’s provisions. In the case of Mr Steven Vasilevski, his disqualification is a direct consequence of his role as a responsible officer of a corporate trustee found to have contravened the Act’s requirements. The disqualification is effective immediately upon issuance and prohibits Mr Vasilevski from acting as a trustee, investment manager, or custodian of a superannuation entity, or being a responsible officer of any such entity. Additionally, the Act includes provisions for the publication of disqualification notices, the potential for revocation of disqualification, and the right of the affected person to request a reconsideration of the decision within a specified timeframe.

Key Provisions

The primary operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to this notice are sections 126A(2), 126A(6), and 126A(7). Section 126A(2) allows the Commissioner of Taxation to disqualify an individual from being a responsible officer if they believe the individual has contravened the Act and that the contraventions were serious enough to warrant disqualification. Section 126A(6) mandates that the Commissioner must give written notice to the disqualified individual, as has been done here with Mr. Steven Vasilevski. Section 126A(7) requires that details of the disqualification be published as a Notifiable Instrument in the Federal Register of Legislation. The Act imposes several obligations on the parties it governs. For Mr. Vasilevski, as a responsible officer, it was his duty to ensure that the corporate trustee adhered to all provisions of the SISA. This includes compliance with the standards set for the operation of superannuation entities, such as ensuring proper financial management and reporting. The notice indicates that Mr. Vasilevski failed to meet these obligations, leading to his disqualification. Additionally, under section 126K, 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 of such entities. The SISA also includes provisions for offences and penalties. Specifically, under section 126K, it is an offence for a disqualified person to act in any capacity that involves the management or oversight of superannuation entities if they are aware of their disqualification. The maximum penalty for this offence is two years imprisonment, as stated in the notice. Furthermore, the notice informs Mr. Vasilevski that he has the right to request a reconsideration of the decision within 21 days of receiving the notice, under section 344 of the SISA. Additionally, the disqualification can be revoked either on the initiative of the Commissioner or following a written application by Mr. Vasilevski, as outlined in subsection 126A(5) of the Act.