NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mrs Thi Liem
NOBLE PARK VIC 3174
I, Alison Lendon, a delegate of the Commissioner of Taxation, give you notice as required by subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SIS Act), that I have made a decision to disqualify you from being a trustee or a responsible officer of a body corporate that is a trustee, investment manager or custodian, of a superannuation entity.
I have disqualified you under subsection 126A(3) of the SIS Act as I am satisfied that you have contravened the SIS Act on one or more occasions and the nature, seriousness and number of the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 20 October 2014
Alison Lendon
Deputy Commissioner
Per Craig Blair
Note 1:
In accordance with subsection 126A(7) of the SIS Act, particulars of this disqualification notice will be published in the Gazette.
Note 2:
In accordance with subsection 126A(5) of the SIS Act, we may revoke this disqualification order on our own initiative or on written application made by you.
Note 3:
In accordance with section 344 of the SIS Act, if you are a person who is affected by this decision and you are dissatisfied with it, you may ask the Commissioner to reconsider this decision. Such a request must be made in writing within 21 days of the day on which you received notice of the decision and must also give the reasons for making the request.
Overview
The Superannuation Industry (Supervision) Act 1993 (SIS Act) was enacted by the Australian Parliament to address issues within the superannuation industry, primarily to protect superannuation fund members and ensure the integrity and proper management of superannuation funds. This legislation established a framework for the supervision and regulation of the superannuation industry, including the creation of the Australian Prudential Regulation Authority (APRA) and the Australian Taxation Office (ATO) as key regulatory bodies. The SIS Act aims to maintain the financial soundness of superannuation funds and to ensure that trustees and responsible officers act in the best interests of fund members. This disqualification notice under subsection 126A(6) of the SIS Act serves as an enforcement mechanism, imposing a disqualification order on Mrs Thi Liem for her contraventions of the Act, with the intent to uphold the standards and obligations set forth by the legislation. The notice also outlines the process for potential revocation of the disqualification and the right to seek reconsideration of the decision by the Commissioner within a specified timeframe.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to individuals and entities involved in the administration and management of superannuation entities, such as trustees, investment managers, and custodians. This legislation is applicable nationally across Australia, ensuring that superannuation funds are managed in compliance with regulatory standards. The Act imposes obligations on these individuals and entities to adhere to strict governance, investment, and reporting requirements to protect the interests of superannuation fund members. The disqualification provisions under the SIS Act, such as the one affecting Mrs Thi Liem, empower the Commissioner of Taxation to disqualify persons from managing superannuation entities if there are significant breaches of the Act. The disqualification order is effective immediately upon issuance, and details of such orders are published in the Gazette. The Act also provides avenues for review and reconsideration of disqualification decisions, allowing affected parties to seek redress if they believe the decision was unjust.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SIS Act) contains various provisions designed to regulate the conduct of trustees and responsible officers in superannuation entities. Section 126A(6) provides that a delegate of the Commissioner of Taxation may disqualify an individual from acting as a trustee or responsible officer of a body corporate that manages superannuation funds, if there are reasonable grounds to believe the individual has contravened the SIS Act in a manner that justifies such a disqualification. Section 126A(3) allows for the disqualification to occur if the delegate is satisfied that the contraventions are serious enough to warrant such action.
Under the SIS Act, trustees and responsible officers have specific obligations to adhere to the legal standards set out in the Act. These obligations include, but are not limited to, ensuring the proper management and investment of superannuation funds, maintaining accurate records, and complying with all applicable legislative requirements. Breaches of these obligations can lead to disciplinary action, including disqualification from managing superannuation entities.
Breaching the SIS Act can result in significant consequences. Under the SIS Act, individuals who are disqualified from managing superannuation entities may face civil penalties, which can include fines. Additionally, if the breaches are considered criminal, individuals may face criminal charges, which can result in imprisonment. The maximum penalties for contraventions of the SIS Act are detailed within the Act, with severe penalties often associated with repeated or egregious breaches. For instance, under section 1311A, individuals found guilty of serious breaches may face fines of up to $1.65 million and/or imprisonment for up to 25 years. This underscores the importance of compliance with the Act’s provisions.