Notice of Disqualification - Mr Wayne Altus

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for effective regulation and supervision of the superannuation industry in Australia. This legislation was introduced by the Commonwealth Parliament to ensure that superannuation trustees and responsible officers are fit and proper people, thus protecting the interests of superannuation fund members. The Act provides for the disqualification of individuals deemed unfit to hold such positions, as evidenced by the disqualification notice issued under its provisions. The policy objective of the SISA is to maintain high standards of conduct and integrity within the superannuation industry, thereby safeguarding the financial well-being of superannuation fund members. The disqualification process, as highlighted in the notice, aims to deter misconduct and ensure compliance with the statutory requirements for trustees and responsible officers.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and administration of superannuation funds in Australia. Specifically, the Act is applicable to trustees, investment managers, custodians, and responsible officers of bodies corporate that serve in these roles for superannuation entities. This encompasses a broad range of industries and conduct related to superannuation fund management. The Act operates on a national level, governing superannuation entities across the Commonwealth of Australia, including states and territories. However, it is worth noting that the Act can extend its application through subordinate instruments, which may provide further clarification or impose additional requirements on those subject to its provisions. There are no stated exclusions or exemptions within the Act itself, but the disqualification process may offer pathways for revocation under certain conditions. Importantly, any person disqualified under the Act who knowingly acts in a capacity they are barred from, faces serious penalties, including up to two years imprisonment.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains provisions that allow the Commissioner of Taxation, through a delegate such as James O'Halloran, to disqualify individuals from being trustees or responsible officers of superannuation entities. In the case of Mr Wayne Altus, James O'Halloran has exercised this power under subsection 126A(3) of the SISA, asserting that Mr Altus is not a fit and proper person to hold such positions. This decision, effective immediately upon issuance, is communicated formally in a Notice of Disqualification (subsection 126A(6)). The Act imposes specific obligations on disqualified individuals, such as Mr Altus, prohibiting them from acting as trustees, investment managers, or custodians of superannuation entities, or as responsible officers of corporate trustees, investment managers, or custodians. The obligation extends to refraining from any involvement in the management or administration of these entities, as detailed in section 126K of the SISA. Non-compliance with these obligations constitutes a serious offence. Breaching the provisions of section 126K by knowingly acting in any capacity prohibited by the disqualification is subject to criminal penalties, including a maximum of two years imprisonment. This stringent penalty underscores the importance of adhering to the disqualification. Additionally, the Act provides avenues for reconsideration and potential revocation of the disqualification. Under subsection 126A(5), the disqualification may be revoked by the Commissioner either on their own initiative or in response to a written application from the disqualified individual. Furthermore, section 344 of the SISA allows for a request to reconsider the disqualification decision within 21 days of receiving the notice, provided that the request is made in writing and includes reasons for the reconsideration.