NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Mr Samuel Jaksic
TOORAK VIC 3142
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: 14 September 2016
James O’Halloran
Deputy Commissioner of Taxation
Per Bernard Morrison
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 was enacted by the Parliament of Australia to address the need for effective regulation and oversight of the superannuation industry, ensuring that superannuation entities are managed with integrity and in the best interests of members. The Act established a framework to regulate trustees, investment managers, and custodians of superannuation entities, focusing on maintaining the financial integrity and sustainability of the superannuation system. The policy objective of the Act is to protect the rights and interests of superannuation members by ensuring that those who manage superannuation funds are fit and proper persons. This includes disqualification provisions to prevent individuals who are not deemed fit and proper from acting in roles that involve managing superannuation entities. The Act empowers the Commissioner of Taxation to disqualify individuals from performing certain roles if they are not considered suitable, thereby safeguarding the superannuation system from potential mismanagement and misconduct.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the superannuation industry, including trustees, investment managers, custodians, and responsible officers of bodies corporate that function as trustees or investment managers of superannuation entities. The scope of the Act is national, as it is a Commonwealth Act, thereby extending its jurisdiction across all states and territories of Australia. The Act imposes a disqualification on individuals deemed unfit and improper to hold certain positions within the superannuation sector, as demonstrated by the notice issued to Mr Samuel Jaksic. This disqualification is triggered when a delegate of the Commissioner of Taxation is satisfied that such a person does not meet the fit and proper person requirements for the roles mentioned. The disqualification is enforceable immediately upon issuance and is subject to potential revocation under specific conditions. Additionally, the Act provides a recourse mechanism for individuals affected by such disqualification, allowing them to request a reconsideration of the decision within 21 days of receiving notice.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) includes specific provisions for disqualifying individuals from acting as trustees or responsible officers of superannuation entities. Under section 126A(3) and 126A(6), a delegate of the Commissioner of Taxation, such as James O’Halloran, can disqualify a person if they are not deemed fit and proper to hold such a role. The disqualification takes immediate effect upon issuance, as outlined in the notice provided to Mr. Samuel Jaksic. This notice informs Mr. Jaksic that he has been disqualified and specifies the reasons, including the determination that he is not a fit and proper person to manage a superannuation entity.
The Act imposes several obligations on disqualified individuals and entities. Firstly, it mandates that disqualified persons refrain from acting as trustees, investment managers, custodians, or responsible officers of superannuation entities, as detailed in section 126K. This prohibition is intended to protect the interests of superannuation fund members and ensure the integrity of the superannuation system. Furthermore, section 126A(7) requires that the details of any disqualification be published in the Commonwealth Government Notices Gazette, ensuring transparency and public notification of such decisions.
Failure to comply with the disqualification provisions can result in serious legal consequences. Section 126K of the SISA criminalises the act of a disqualified person knowingly continuing to serve in any capacity related to a superannuation entity. The offence is punishable by up to two years in jail, as specified in the notice. Additionally, section 344 of the SISA provides an avenue for review, allowing the Commissioner to reconsider the disqualification decision if the affected party submits a written request within 21 days of receiving notice, explaining why they believe the decision is incorrect. This review process provides a measure of recourse for those who feel their disqualification was unjust.