NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Ms Cindy Freeman
PACIFIC PINES QLD 4211
I, James O’Halloran, a delegate of the Commissioner of Taxation, give you notice as required by subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA), that I have disqualified you under subsection 126A(3) of the SISA.
I have disqualified you as I am satisfied that you are not a fit and proper person to be a trustee or a responsible officer of a body corporate that is a trustee, of a superannuation entity for the purposes of the SISA.
The disqualification takes effect on the day on which it is made.
Dated: 18 January 2016
James O’Halloran
Deputy Commissioner of Taxation
Per William Keating
Note 1:
In accordance with subsection 126A(7) of the SISA, particulars of this disqualification notice will be published in the Commonwealth Government Notices Gazette.
Note 2:
In accordance with subsection 126A(5) of the SISA, we may revoke this disqualification on our own initiative or on written application made by you.
Note 3:
In accordance with section 344 of the SISA, 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 after 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 (SISA) was enacted to address the need for stringent regulation and oversight of the superannuation industry in Australia. The Act was introduced to ensure that superannuation entities and their trustees operate in a manner that is fair, responsible, and in the best interests of the members they serve. The SISA was enacted by the Australian Parliament and aims to protect the superannuation savings of Australians by ensuring that superannuation trustees and responsible officers are fit and proper individuals. The Act provides for the disqualification of individuals who are not deemed suitable to hold such positions, as exemplified by the notice of disqualification issued to Ms Cindy Freeman, highlighting the legislative intent to maintain the integrity of the superannuation system.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to trustees and responsible officers of superannuation entities within the Commonwealth of Australia. The act encompasses individuals who are entrusted with the management of superannuation funds, ensuring that they meet the criteria of being fit and proper persons to hold such roles. This means that the SISA applies to a broad range of entities and individuals who are involved in the administration and oversight of superannuation funds, including trustees of self-managed superannuation funds (SMSFs) and responsible officers of corporate trustees. The geographic reach of the act is national, applying across all states and territories in Australia. The act does not explicitly state exclusions or thresholds; however, it provides mechanisms for disqualification and reconsideration of disqualified individuals, which implies that all trustees and responsible officers within its scope are subject to these provisions. The application of the act can be extended or restricted through subordinate instruments, which may include regulations or guidelines issued by the Commissioner of Taxation.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) provides that certain individuals can be disqualified from holding positions within the superannuation industry if deemed unfit and improper (section 126A). In this case, Ms. Cindy Freeman has been disqualified under subsection 126A(3) of the SISA, as the delegate of the Commissioner of Taxation is satisfied that she is not a fit and proper person to serve as a trustee or a responsible officer of a superannuation entity (subsection 126A(6)). The disqualification is effective from the day the notice is issued. This disqualification is a significant action under the SISA, reflecting the importance of ensuring the integrity and reliability of those managing superannuation funds.
The SISA imposes obligations on trustees and responsible officers to act in the best interests of the fund members, adhering to strict regulatory standards (section 91). When an individual is disqualified under the Act, it signifies that they have failed to meet these standards, potentially through misconduct, incompetence, or other disqualifying circumstances. This requirement underscores the need for high professional and ethical standards within the superannuation industry to protect the interests of fund members.
Breach of the SISA, particularly through acting as a trustee or responsible officer while disqualified, can lead to severe consequences. Under section 139 of the SISA, individuals who contravene the disqualification provisions can be subject to penalties. The maximum penalty for such an offence can include substantial fines and, in some cases, imprisonment. Additionally, the entity itself can face penalties, which may include fines and other civil or criminal actions depending on the severity and impact of the breach. These measures are designed to deter individuals from continuing to operate within the superannuation industry despite being disqualified, thereby protecting the integrity and stability of the superannuation system.