Notice of Disqualification – Sam Snounou

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Australian Parliament to address the need for regulation and supervision of the superannuation industry, ensuring that superannuation entities are managed efficiently, economically, and in the best interests of members. The Act was designed to fill a significant gap by establishing a framework for the supervision of trustees, investment managers, and custodians of superannuation funds, with the overarching policy objective of protecting the superannuation savings of Australians. The 1993 Act was introduced to respond to systemic issues within the superannuation industry, including improper management practices and breaches of fiduciary duties, thereby safeguarding the retirement savings of millions of Australians. The recent disqualification of Sam Snounou under this Act exemplifies the legislative intent to maintain high standards of conduct within the industry and to enforce penalties for serious contraventions.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the superannuation industry, including trustees, investment managers, custodians, and responsible officers of superannuation entities. The Act operates nationally across Australia, encompassing both Commonwealth and state jurisdictions. It targets conduct and transactions related to the management and administration of superannuation funds, ensuring compliance with regulatory standards to protect the interests of superannuation fund members. Exclusions or exemptions from the Act are limited, and its application can be extended or restricted through subordinate instruments issued by the Commissioner of Taxation. In this instance, Sam Snounou has been disqualified under the Act due to contraventions, with the disqualification taking immediate effect upon issuance. The notice of disqualification, as outlined in the Act, will be published in the Commonwealth Government Notices Gazette, and Sam Snounou is prohibited from acting in any capacity related to superannuation entities until the disqualification is revoked.

Key Provisions

The notice issued to Sam Snounou, dated 21 September 2021, under the Superannuation Industry (Supervision) Act 1993 (SISA) informs him of his disqualification by Emma Rosenzweig, a delegate of the Commissioner of Taxation. The disqualification is grounded on subsection 126A(1) of the SISA, which provides the authority to disqualify individuals who have contravened the SISA, and the seriousness of those contraventions justifies the action (subsection 126A(6)). This disqualification is effective immediately from the date of the notice. The SISA imposes specific obligations on the parties it governs. These include, but are not limited to, ensuring compliance with the provisions of the Act, particularly for those in positions of trust such as trustees, investment managers, custodians, or responsible officers of superannuation entities (section 126K). The Act mandates that these individuals must not act in their roles if they are disqualified, which is a critical obligation under the SISA. Breaching these obligations can lead to serious consequences. Specifically, section 126K of the SISA criminalises the act of a disqualified person knowingly continuing to be or act as a trustee, investment manager, custodian, or responsible officer of a superannuation entity. The penalty for this offence can be up to two years in jail, underscoring the severity of the contraventions against the Act (subsection 126A(5)). Additionally, the disqualification notice indicates that there is a possibility for revocation of the disqualification either on the initiative of the delegate or upon a written application by the disqualified person. For those affected by the decision and unsatisfied with it, the SISA provides a mechanism for reconsideration. Under section 344, an individual can request the Commissioner to reconsider the decision within 21 days of receiving notice of the decision. This request must be in writing and should detail the reasons why the decision is considered incorrect. This provision ensures that there is a formal process in place for addressing grievances and seeking rectification of perceived errors in the disqualification process.