Notice of disqualification - Mrs Edell Moy

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to regulate the superannuation industry in Australia, ensuring the protection of superannuation fund members' interests and promoting the efficient, honest, and faithful performance of functions by trustees, investment managers, and custodians of superannuation entities. The legislation was introduced to address the need for oversight and regulation in the superannuation sector, which was growing in significance and complexity. The SISA was enacted by the Parliament of Australia and its policy objective is to maintain high standards of conduct and accountability within the superannuation industry. In the context of the notice of disqualification issued under the SISA, the policy objective is to protect the interests of superannuation fund members by ensuring that only fit and proper persons manage their superannuation funds. This is achieved by disqualifying individuals who are deemed not to meet the required standards, as demonstrated in the disqualification of Mrs Edell Moy from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a body corporate involved in such roles.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and oversight of superannuation entities, including trustees, investment managers, and custodians, as well as responsible officers of corporate bodies that undertake these roles. The Act has a broad jurisdictional reach, operating at the Commonwealth level, thereby affecting entities and individuals across Australia. The disqualification provisions under the SISA allow for the removal of individuals deemed unfit and improper to manage superannuation entities, as illustrated by the notice issued to Mrs Edell Moy. The decision to disqualify Mrs Moy from being a trustee, investment manager, or custodian, or a responsible officer of such entities, is based on a determination that she does not meet the "fit and proper person" criteria required by the SISA. This disqualification is effective immediately upon the issuance of the notice. The Act provides mechanisms for the revocation of such disqualifications and avenues for reconsideration by the Commissioner if the affected party is dissatisfied with the decision. Additionally, details of the disqualification are to be published in the Gazette as per the Act's provisions.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains provisions that enable the Commissioner of Taxation to disqualify individuals from holding certain roles within the superannuation industry. Under section 126A(6), a delegate of the Commissioner, such as Alison Lendon in this case, can disqualify an individual from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a body corporate performing these roles. In this instance, the notice issued to Mrs Edell Moy specifies that she has been disqualified under subsection 126A(3) of the SISA, as it has been determined that she is not a fit and proper person to hold such positions. The obligations imposed by the Act on the disqualified party, Mrs Edell Moy, include compliance with the terms of the disqualification. She is immediately prohibited from engaging in any activities related to the roles she has been disqualified from, such as managing investments or overseeing superannuation funds. The notice also informs her that the disqualification is effective from the date of the notice, which is 28 January 2015. Additionally, Mrs Moy has the right to request a reconsideration of the decision within 21 days of receiving the notice, as per section 344 of the SISA. There are also significant consequences outlined in the SISA for breaches of the disqualification order. While specific offences and penalties are not detailed in the notice itself, the SISA generally provides for both civil and criminal penalties for non-compliance with disqualification orders. Civil penalties can include fines, and in some cases, criminal penalties may apply, which could result in imprisonment. The precise penalties depend on the nature and severity of the breach, as well as any relevant case law and statutory provisions. It is crucial for Mrs Moy to adhere to the terms of her disqualification to avoid these potential consequences.