NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
MR PETER BAUMAN
BRISBANE CITY QLD 4000
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(2) of the SIS Act as I am satisfied that the corporate trustee has contravened the SIS Act on one or more occasions, and at the time of the contraventions you were a responsible officer of the corporate trustee and the number 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: 21 May 2013
Ivan Parrett
Assistant Commissioner of Taxation
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 to address the need for effective regulation and oversight of the superannuation industry in Australia. This legislation was introduced to ensure that superannuation entities are managed in a manner that protects the interests of members, and to prevent misconduct and mismanagement within the industry. The Act was enacted by the Parliament of Australia, reflecting a policy objective to provide a robust regulatory framework that promotes trust and confidence in superannuation arrangements. The Act aims to maintain the integrity of the superannuation system by enabling the disqualification of individuals who engage in repeated or serious breaches of the law, thereby safeguarding the financial welfare of superannuation members. This legislative framework is critical in maintaining the stability and reliability of Australia's superannuation system, which is a cornerstone of the nation's retirement income policy.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to individuals and entities involved in the administration of superannuation funds, specifically targeting trustees, investment managers, and custodians of superannuation entities. This legislation applies to those who hold a fiduciary position within the superannuation industry, ensuring compliance with the standards and regulations governing the handling of superannuation funds. The reach of the SIS Act is national, applying across Australia, including the Commonwealth, states, and territories. The Act provides for the disqualification of individuals who are responsible officers of entities that contravene the Act, with the decision being enforceable and effective immediately upon notice. Exclusions and exemptions from the Act are generally limited to specific entities or conduct that fall outside the scope of superannuation regulation. The application of the Act can be extended or restricted through subordinate instruments, which provide further detail on implementation and enforcement.
Key Provisions
The notice of disqualification under the Superannuation Industry (Supervision) Act 1993 (SIS Act) informs Mr. Peter Bauman that he has been disqualified from serving as a trustee or responsible officer of any body corporate involved in managing superannuation funds. This disqualification arises due to the conviction that the corporate trustee has breached the SIS Act, and Mr. Bauman was a responsible officer at the time of these contraventions. The seriousness and frequency of these breaches are sufficient to justify the disqualification (subsection 126A(2) and (6) SIS Act). The disqualification order becomes effective immediately upon the issuance of this notice.
The obligations imposed on Mr. Bauman under the SIS Act include the requirement to cease any activities that involve managing superannuation funds, including serving as a trustee or responsible officer for any entity involved in such activities. The SIS Act mandates that trustees and responsible officers adhere to strict standards of conduct and compliance, and any breaches can lead to severe repercussions, including disqualification. Mr. Bauman is now prohibited from participating in any capacity that would allow him to influence the management or administration of superannuation funds.
Failure to comply with the disqualification order can result in significant penalties. Under the SIS Act, breaches of disqualification orders can lead to both civil and criminal penalties. Specifically, civil penalties can include substantial fines, up to a maximum of $210,000 for individuals, as per the applicable sections of the Act. Additionally, criminal charges can be pursued, which may lead to imprisonment, with penalties for such offences typically outlined in the SIS Act or other relevant legislation. It is crucial for Mr. Bauman to adhere strictly to the terms of the disqualification to avoid these severe consequences.
Moreover, the Act provides avenues for Mr. Bauman to seek reconsideration of the disqualification decision. If dissatisfied with the decision, he may apply in writing to the Commissioner within 21 days of receiving the notice, providing reasons for his request (section 344 SIS Act). This provision ensures that affected parties have an opportunity to contest the decision and potentially have it reviewed or revoked.