| Commonwealth
of Australia | Gazette |
Published by the Commonwealth of Australia | GOVERNMENT NOTICES |
NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
SCOTT C DARCY
BALMAIN NSW 2041
I, James O'Hallaran, 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(2) of the SISA.
I have disqualified you as I am satisfied that the corporate trustee of one or more superannuation entities has contravened the SISA on one or more occasions, and at the time of the contraventions you were a responsible officer of the corporate trustee and the seriousness of the contraventions provides grounds for disqualifying you.
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: 9 October 2018
James O'Hallaran
Deputy Commissioner of Taxation
Per Michael Lazzaroni
Director, Superannuation
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 to provide for the effective regulation and supervision of the superannuation industry, ensuring that trustees and responsible officers act in the best interests of superannuation fund members. This Act was introduced to address the problem of inadequate regulation and oversight in the superannuation industry, which could potentially lead to mismanagement, fraud, and other forms of misconduct. The Superannuation Industry (Supervision) Act 1993 was passed by the Parliament of Australia, with the aim of establishing a robust regulatory framework to protect the financial interests of superannuation fund members. The policy objective of the Act is to ensure that trustees and responsible officers of superannuation entities act with integrity and competence, and to maintain public confidence in the superannuation system. The Act empowers the Commissioner of Taxation to disqualify individuals who are deemed unfit to hold positions of responsibility within the superannuation industry.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and administration of superannuation funds within Australia. This includes trustees, responsible officers, and entities that act as trustees, investment managers, or custodians of superannuation entities. The Act applies on a national level, impacting all individuals and entities operating within the superannuation sector across Australia, including those in the Commonwealth, states, and territories. The Act includes provisions that allow for the disqualification of individuals found to be unfit or improper to hold positions of responsibility within the superannuation industry. Exclusions and exemptions within the Act are minimal, and the application of the Act can be extended or restricted through subordinate instruments, such as regulations or guidelines issued by the Commissioner of Taxation. The seriousness of the contraventions by a responsible officer, such as a breach of the SISA, can lead to disqualification, which is enforced by the delegate of the Commissioner of Taxation. This legislative framework ensures that the superannuation industry maintains high standards of integrity and compliance.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) outlines key provisions in sections 126A and 126K which are pertinent to the disqualification of individuals from participating in the management of superannuation entities. Specifically, section 126A(2) allows for the disqualification of a person if they are found to be a responsible officer of a corporate trustee that has contravened the SISA, and if their actions provide sufficient grounds for disqualification. Section 126A(6) mandates the provision of a formal notice to the disqualified individual, as seen in the notice given to Scott C Darcy.
The obligations imposed by the Act on individuals such as Scott C Darcy include maintaining compliance with SISA regulations while serving as a responsible officer of a superannuation entity. Failure to adhere to these obligations can result in disqualification under section 126A(2). Furthermore, section 126K imposes criminal penalties for disqualified individuals who knowingly act as trustees, investment managers, or custodians of superannuation entities. The maximum penalty for this offence, as stated in section 126K, is two years imprisonment.
The consequences of breaching the provisions of the SISA are severe. Section 126K establishes that knowingly acting in a prohibited capacity after being disqualified is a criminal offence, with potential penalties including imprisonment for up to two years. Additionally, section 126A(5) provides for the possibility of revocation of disqualification, which can occur either on the initiative of the Commissioner of Taxation or upon a written application from the disqualified person. This flexibility allows for potential reinstatement under certain conditions. Finally, section 344 of the SISA offers a mechanism for reconsideration of the disqualification decision by the Commissioner, provided that a written request is submitted within 21 days of receiving the notice, detailing the grounds for dissatisfaction with the decision.