NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mr Paul Lawrence
Cremorne VIC 3121
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: 6 October 2016
James O’Halloran
Deputy Commissioner of Taxation
Per Colleen Shelton
Note 1:
Under subsection 126A(7) of the SISA, details of this disqualification notice will be published in the Commonwealth Government Notices Gazette.
Note 2:
Under section 126K of the SISA, it is an offence for a disqualified person, who knows that he or she is a disqualified person, to be, or act as a:
trustee, investment manager or custodian of a superannuation entity
responsible officer or a body corporate that is a trustee, investment manager or custodian, of a superannuation entity
The maximum penalty for committing this offence is two years jail.
Note 3:
Under subsection 126A(5) of the SISA, we may revoke this disqualification on our own initiative or on your written application.
Note 4:
Under section 344 of the SISA, if you are affected by this decision and are not satisfied with it, you can ask the Commissioner to reconsider the decision. This request must be made in writing within 21 days of receiving notice of this decision and must give the reasons you think the decision is wrong.
Overview
The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Australian Parliament to address the need for proper regulation and supervision of the superannuation industry, ensuring that superannuation entities are managed in the best interests of members. This Act aims to maintain the integrity and stability of the superannuation system by establishing a framework for the oversight and regulation of trustees and other key personnel involved in managing superannuation funds. The SISA identifies the need for fit and proper persons to hold positions of responsibility within the superannuation industry to protect the financial interests of members and maintain public confidence in the system. The legislation empowers the Commissioner of Taxation to disqualify individuals who are deemed unfit to manage superannuation entities, thereby safeguarding the financial well-being of superannuation members.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation entities, such as trustees and responsible officers of body corporates that act as trustees. The Act’s jurisdiction is national, given its Commonwealth enactment, affecting all entities operating within Australia. The Act provides the Commissioner of Taxation with the authority to disqualify individuals deemed unfit and improper to manage superannuation funds, as illustrated in the disqualification notice issued to Mr. Paul Lawrence. The disqualification is immediate upon issuance and includes a prohibition from acting in any capacity related to the management or administration of superannuation entities. Additionally, the Act imposes a criminal offence for any disqualified person who continues to act in such capacities, with penalties including up to two years in jail. The Act also allows for the revocation of disqualification and provides a process for reconsideration of the decision by the Commissioner.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) contains provisions for disqualifying individuals deemed unfit to manage superannuation entities. Section 126A(3) allows for the disqualification of individuals who are not fit and proper persons to serve as trustees or responsible officers of superannuation bodies. This disqualification is made effective immediately upon issuance, as seen in the notice issued to Mr Paul Lawrence (subsection 126A(6)). The notice informs Mr Lawrence that he has been disqualified due to being considered unfit to manage superannuation entities. The disqualification becomes effective on the date of the notice.
The Act imposes specific obligations on disqualified individuals, such as Mr Lawrence, to refrain from acting as trustees, investment managers, or custodians of superannuation entities. This prohibition is explicitly stated in section 126K of the SISA. Any knowledge of the disqualification and subsequent involvement in the management of superannuation entities constitutes an offence. The legislation clearly outlines that such involvement is punishable by a maximum penalty of two years imprisonment, emphasising the seriousness of the disqualification.
In addition to the penalties for breach, the Act also provides for the revocation of disqualification. Under subsection 126A(5), the disqualification can be revoked either by the authority on its own initiative or following a written application by the disqualified individual. This mechanism ensures that individuals have a pathway to potentially restore their eligibility to manage superannuation entities. Furthermore, section 344 of the SISA allows for the reconsideration of the disqualification decision. Any individual affected by the disqualification can request a review within 21 days of receiving the notice, provided that the request is made in writing and includes the reasons for dissatisfaction with the decision.