Notice of Disqualification - Richard Crosher

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to address the need for effective supervision and regulation of the superannuation industry in Australia, ensuring that trustees and responsible officers act in the best interests of superannuation fund members. The Act was introduced by the Australian Parliament with the policy objective of enhancing the protection of superannuation funds and improving the financial health and integrity of the superannuation industry. In response to identified gaps in the regulation and oversight of superannuation entities, the Act established a framework for the supervision of superannuation entities and the imposition of disqualifications on responsible officers who engage in misconduct or breaches of the legislation. This legislative measure aims to maintain public confidence in the superannuation system by ensuring that those responsible for managing superannuation funds adhere to high standards of conduct and accountability.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to any individual or entity involved in the management and administration of superannuation entities, including trustees, investment managers, and custodians. Specifically, the Act targets responsible officers who are in a position of authority and oversight within a corporate trustee. The geographic and jurisdictional reach of the Act is national, as it is a Commonwealth Act, thereby applying across all states and territories within Australia. The Act imposes a disqualification on individuals who have been found to be responsible officers at the time of contraventions by a corporate trustee. The disqualification is triggered when the number and/or seriousness of the contraventions provide sufficient grounds for such action, as per the provisions of subsection 126A(2) of the SISA. The disqualification is immediate upon issuance and will also be published in the Commonwealth Government Notices Gazette as required by subsection 126A(7) of the SISA. Additionally, the Act includes provisions under section 126K that make it an offence for a disqualified person to act in any capacity involving a superannuation entity, with a maximum penalty of two years imprisonment. The disqualification can be revoked under subsection 126A(5) either on the initiative of the authorities or upon a written application by the disqualified individual. For those who wish to contest the disqualification, section 344 of the SISA provides a mechanism to request a reconsideration of the decision within 21 days of receiving notice, provided that the request is made in writing and includes the reasons for dissatisfaction with the decision.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) outlines specific provisions for the disqualification of individuals from managing superannuation entities. Section 126A(2) provides the mechanism for disqualification when a corporate trustee contravenes the SISA, and the responsible officer at the time of the contraventions is deemed unfit to continue in their role due to the frequency or seriousness of the breaches. In this case, Richard Crosher has been disqualified by Emma Rosenzweig, a delegate of the Commissioner of Taxation, under subsection 126A(6), effective from the date of the notice, 2 September 2022. This disqualification is based on Richard’s role as a responsible officer during the contraventions. Under the SISA, Richard is now legally barred from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer for any body corporate that serves in these capacities. This restriction is detailed in section 126K, which imposes a significant obligation on Richard to refrain from any involvement in the management of superannuation entities. The act further mandates that any details of the disqualification be published in the Commonwealth Government Notices Gazette, as per subsection 126A(7). Should Richard contravene the terms of his disqualification, he faces severe consequences. According to section 126K, knowingly acting in any capacity as a trustee, investment manager, custodian, or responsible officer for a superannuation entity while disqualified is an offence. The penalty for such an offence can include up to two years in jail, highlighting the seriousness of the breach. Furthermore, the disqualification may be revoked either on the initiative of the Commissioner or upon Richard’s written application as per subsection 126A(5). If Richard wishes to challenge the decision, he has the right to request a reconsideration from the Commissioner within 21 days of receiving the notice, as stipulated in section 344.