| Commonwealth
of Australia | Gazette |
Published by the Commonwealth of Australia | GOVERNMENT NOTICES |
NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Scott Watkins
Mona Vale NSW 2103
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(1) and 126A(3) of the SISA.
I have disqualified you as I am satisfied that you have contravened the SISA on one or more occasions and the nature of the contraventions provides grounds for disqualifying you and 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: 15 October 2019
James O'Halloran
Deputy Commissioner of Taxation
Per Ian Ross
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 address the need for robust regulation and supervision of the superannuation industry in Australia. The act was introduced to ensure that the administration and management of superannuation funds are conducted with integrity and responsibility, thereby protecting the interests of superannuation fund members. The act was passed by the Parliament of Australia, reflecting a policy objective to safeguard the financial welfare of Australians by ensuring that trustees and responsible officers of superannuation entities are fit and proper persons. This legislation provides a framework for the oversight and regulation of the superannuation industry, including provisions for disqualifying individuals who fail to meet the required standards of conduct and competence.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation funds within Australia, encompassing trustees, investment managers, custodians, and responsible officers of superannuation entities. The Act's jurisdiction extends throughout the Commonwealth, impacting the entire nation. The Act explicitly excludes certain entities or individuals from its purview, such as those who are not directly involved in the administration of superannuation funds, unless their conduct or transactions involve a contravention of the Act's provisions. The application of the Act can be further extended or restricted through subordinate instruments, which provide additional regulatory details or specific exclusions. The Act also includes provisions for the disqualification of individuals found to be unfit and improper to manage superannuation entities, with the decision to disqualify and the subsequent appeal processes detailed within the legislation.
Key Provisions
The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) in this context are subsections 126A(1), 126A(3), and 126A(6). Subsection 126A(1) allows the Commissioner of Taxation to disqualify a person from being a trustee or a responsible officer of a superannuation entity if certain conditions are met. Subsection 126A(3) further defines what constitutes a contravention of the SISA that can lead to disqualification. Subsection 126A(6) requires a delegate of the Commissioner to give notice to the person being disqualified, as demonstrated in the notice given to Scott Watkins. The disqualification takes immediate effect upon the issuance of the notice.
The Act imposes several obligations and requirements on Scott Watkins and any other entities he might be associated with. Primarily, he is barred from acting as a trustee, investment manager, or custodian of a superannuation entity or being a responsible officer of a body corporate involved in these roles. This restriction is intended to ensure that only fit and proper persons manage superannuation funds, thereby protecting the interests of superannuation fund members. The Act also requires that details of the disqualification be published in the Commonwealth Government Notices Gazette, ensuring transparency and public notification of such actions.
Breaching the provisions of the SISA by acting in contravention of the disqualification can lead to severe consequences. Section 126K of the SISA criminalises the act of a disqualified person knowingly acting in the prohibited roles, with a maximum penalty of two years imprisonment. This penalty underscores the seriousness with which the Act treats violations related to the management of superannuation funds. Additionally, the Act provides for the potential revocation of the disqualification under subsection 126A(5), either on the initiative of the Commissioner or upon a written application by the disqualified person. For those dissatisfied with the disqualification decision, section 344 of the SISA offers a recourse mechanism, allowing for a reconsideration request to be made within 21 days of receiving the notice of the decision.