Notice of Disqualification - Scott Levoune - 7 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide robust oversight and regulation of the superannuation industry, addressing the need for effective governance and management of superannuation entities to protect the interests of superannuation members. The Act was enacted by the Commonwealth Parliament and aims to ensure the proper administration of superannuation entities, safeguarding the financial well-being of participants. This legislation empowers the Commissioner of Taxation to disqualify individuals who have acted contrary to the provisions of the SISA while serving as responsible officers of corporate trustees. The disqualification serves as a deterrent and a means of enforcing compliance with the Act's stringent requirements, thereby maintaining the integrity of the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers within superannuation entities, which include individuals and corporate trustees involved in the management of superannuation funds. This Act operates on a national level, covering all jurisdictions within Australia. The Act’s scope includes the disqualification of individuals who are responsible officers if they have been involved in the contravention of the Act, with the severity of the contravention being a key factor in such disqualifications. The geographic reach of this legislation is nationwide, ensuring uniform application across the Commonwealth. Additionally, the Act extends its application through subordinate instruments, such as the publication of disqualification notices in the Federal Register of Legislation, and it also outlines specific exemptions and penalties, including potential jail time for repeated offences. The Act provides mechanisms for reconsideration of disqualifications and outlines the process for such applications, ensuring due process is maintained for those affected by its provisions.

Key Provisions

The key operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) in this context are sections 126A(2) and 126A(6). Section 126A(2) provides the grounds for disqualifying a person from being a responsible officer of a corporate trustee of a superannuation entity, which applies when the corporate trustee has contravened the SISA and the seriousness of the contraventions justifies the disqualification. Section 126A(6) requires the Commissioner of Taxation to give notice of the disqualification to the person concerned, as demonstrated in the notice to Scott Levoune. The notice details the reasons for the disqualification and informs the individual that they are disqualified from being a responsible officer due to the contraventions committed by the corporate trustee while they held that position. The SISA imposes specific obligations and requirements on the parties and entities it governs. For Scott Levoune, as a disqualified person, the Act mandates that he must not act or be involved in any capacity as a trustee, investment manager, or custodian of a superannuation entity, nor should he be associated with any body corporate that holds such roles. This requirement is clearly outlined in section 126K of the SISA and is aimed at ensuring that individuals who have been found to be involved in serious contraventions do not continue to have influence over superannuation entities. The disqualification also affects any related entities by preventing them from employing or engaging a disqualified person in roles that involve management or oversight of superannuation funds. Breaching the provisions of the SISA by continuing to act in a capacity prohibited by section 126K constitutes an offence under the Act. Such an offence carries significant consequences, with the maximum penalty being two years imprisonment, as specified in the notice. This stringent penalty underscores the seriousness with which the law treats breaches related to the management of superannuation funds. Additionally, the notice informs Scott Levoune of the potential for revocation of the disqualification under subsection 126A(5) of the SISA, either on the initiative of the Commissioner of Taxation or upon a written application by the disqualified person. This provision offers a pathway for review and possible reinstatement, provided the grounds for disqualification no longer apply. Finally, the notice includes provisions for Scott Levoune to seek reconsideration of the decision if he is not satisfied with the disqualification. Under section 344 of the SISA, such a request must be made in writing within 21 days of receiving the notice, and it must outline the reasons for believing the decision to be incorrect. This offers a formal mechanism for addressing grievances and ensuring that the decision-making process adheres to legal and procedural standards.