NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
MS EDWINA NEGAPATAN
ASHCROFT NSW 2168
I, Ivan Parrett, 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(1) of the SIS Act as I am satisfied that you have contravened the SIS Act on one or more occasions and the nature and seriousness of the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 5 March 2014
Ivan Parrett
Assistant Commissioner of Taxation
Per Gerard Carney
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 was enacted by the Australian Parliament to address the need for effective regulation and oversight of the superannuation industry. This Act was introduced to fill a significant gap in ensuring that superannuation funds are managed with the highest standards of integrity and accountability, particularly in preventing misconduct and maladministration within the sector. The Act provides a framework for the regulation of superannuation entities, trustees, and other related entities to protect the interests of superannuation fund members. The policy objective underpinning the Act is to ensure that the superannuation industry operates in a manner that maintains public confidence and preserves the financial well-being of superannuation fund members. As demonstrated by the disqualification notice issued under this Act, it aims to deter and sanction individuals who fail to comply with the stringent standards set forth by the legislation.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to individuals and entities involved in the supervision of superannuation funds in Australia. Specifically, the Act governs trustees, investment managers, and custodians of superannuation entities, ensuring compliance with legislative standards to protect the interests of superannuation fund members. The Act applies nationally, as it is a Commonwealth Act, and therefore its provisions and enforcement extend across all states and territories of Australia. The Act allows for the disqualification of individuals from serving as trustees or responsible officers if there is evidence of contraventions that warrant such action. This disqualification can be imposed by a delegate of the Commissioner of Taxation and is effective immediately upon notice. The Act also provides mechanisms for the review and potential revocation of disqualification orders, ensuring a degree of procedural fairness. Subordinate instruments may further clarify or expand upon the application of the Act, though the primary text sets out the core provisions and jurisdictional reach.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SIS Act) outlines various provisions that govern the conduct of trustees and responsible officers of superannuation entities, with specific sections addressing disqualification. Section 126A(1) allows the Commissioner of Taxation to disqualify individuals from acting as trustees or responsible officers if they have contravened the Act and the nature and seriousness of the contraventions warrant such action. This particular notice of disqualification (subsection 126A(6)) informs the affected individual, in this case, Edwina Negapatanascroft, that a decision has been made to disqualify her based on her contraventions of the SIS Act.
The obligations imposed by the SIS Act on trustees and responsible officers include ensuring compliance with all regulatory requirements, maintaining proper records, and acting in the best interests of the superannuation entity and its members. The Act mandates that trustees and responsible officers must adhere to certain fiduciary duties, including the duty to act with care, skill, and diligence, and to avoid conflicts of interest. They must also ensure that the superannuation entity operates in accordance with the law and its governing rules and regulations.
Breach of the provisions of the SIS Act can result in serious consequences. Offences under the SIS Act can attract both civil and criminal penalties. Civil penalties include fines and, in some cases, compensation to affected parties. Criminal penalties may include imprisonment, with the maximum penalty varying depending on the specific offence. For instance, serious breaches may result in fines of up to $132,000 for individuals and $660,000 for bodies corporate, as well as imprisonment for up to five years. The notice of disqualification itself is an administrative measure that bars the individual from participating in the management of superannuation entities until the order is revoked or overturned.