Notice of Disqualification - Mr Tomas Kordos

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide a regulatory framework designed to ensure the proper administration and management of superannuation entities in Australia. The legislation was introduced to address the need for oversight and regulation in the superannuation industry to protect the interests of superannuation fund members. The SISA was enacted by the Commonwealth Parliament with the policy objective of ensuring that superannuation entities are managed with integrity and that trustees, investment managers, custodians, and responsible officers meet the required standards of competence and reliability. One of the key provisions of the Act is the ability for the Commissioner of Taxation to disqualify individuals deemed unfit to hold positions of responsibility within superannuation entities, thereby safeguarding the financial welfare of superannuation fund members. The notice of disqualification to Mr. Tomas Kordos, indicating that he has been found not to be a fit and proper person to serve as a trustee, investment manager, custodian, or responsible officer of a superannuation entity, exemplifies the enforcement mechanisms available under the SISA to maintain the integrity of the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation funds, including trustees, investment managers, custodians, and responsible officers of corporate bodies performing such roles. This Act extends its reach across the Commonwealth of Australia, affecting all jurisdictions uniformly as it is a federal statute. The Act specifically targets those who are not deemed fit and proper to manage superannuation entities, with the disqualification applying immediately upon notice issuance. The Act includes provisions for the publication of disqualification notices in the Gazette and allows for the revocation of such disqualifications under certain conditions, including by the delegate of the Commissioner of Taxation or upon application by the disqualified person. Furthermore, the Act provides a mechanism for the reconsideration of disqualification decisions by the Commissioner if the affected person submits a written request within 21 days of receiving the notice of disqualification, outlining the reasons for the request.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) provides the legal framework for the regulation of superannuation entities in Australia. Under this Act, the Commissioner of Taxation has the authority to disqualify individuals from holding positions such as trustee, investment manager, custodian, or responsible officer of a superannuation entity if they are deemed not fit and proper to hold such positions (subsection 126A(3)). The notice of disqualification, as provided in the document, informs the affected individual that they have been disqualified from these roles as of the date the notice was issued (subsection 126A(6)). The disqualification in this case was imposed by Alison Lendon, a delegate of the Commissioner of Taxation, who has determined that Mr. Tomas Kordos is not a fit and proper person to hold any of the specified roles. The Act imposes certain obligations on individuals disqualified under the SISA. Firstly, they are no longer permitted to act in any capacity that requires their involvement in the management or administration of a superannuation entity. This disqualification also has implications for any corporate entities they are associated with, as it extends to their roles as responsible officers within those entities. The disqualification notice clearly outlines the cessation of Mr. Kordos's eligibility to serve in these capacities, effective immediately from the date of the notice. Breach of the provisions of the SISA, including continuing to act in a disqualified capacity, can lead to serious consequences. Under section 344 of the Act, any person who continues to perform duties despite being disqualified can face both civil and criminal penalties. The specific penalties are not detailed in the notice but typically include fines and potential imprisonment for criminal breaches. Additionally, the notice mentions that the disqualification can be revoked either by the Commissioner on their own initiative or upon a written application by the disqualified individual. Furthermore, the disqualification is subject to public notification, as required by subsection 126A(7), which mandates that details of the disqualification be published in the Gazette.