NOTICE OF DISQUALIFICATION – SEAN B DRURY – 24 January 2024
Superannuation Industry (Supervision) Act 1993
To:
SEAN B DRURY
WOONONA NSW 2517
I, Emma Rosenzweig, 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’ve disqualified you as I’m 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 nature and seriousness of the contraventions provides grounds for disqualifying you.
The disqualification takes effect on the day on which it is made.
Dated: 24 January 2024
Emma Rosenzweig
Deputy Commissioner of Taxation
Per Bharti Ben
Note 1:
Under subsection 126A(7) of the SISA, details of this disqualification notice will be published as a Notifiable Instrument in the Federal Register of Legislation..
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 (SISA) was enacted to provide for the supervision and regulation of the superannuation industry, addressing issues related to the management and governance of superannuation entities. The Act was introduced to fill a gap in the regulation of the superannuation sector, ensuring that trustees, investment managers, and custodians of superannuation entities adhere to stringent standards to protect the interests of superannuation fund members. The SISA is administered by the Australian Parliament, and its policy objective is to maintain and enhance the integrity and efficiency of the superannuation system in Australia. The Act aims to ensure that responsible officers and trustees act with due diligence and in the best interest of fund members, thereby safeguarding the financial well-being of participants in the superannuation system.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the supervision and management of superannuation entities in Australia, including trustees, investment managers, and custodians. Specifically, it targets responsible officers of corporate trustees who have been found to contravene the provisions of the Act, thereby providing grounds for disqualification. This Act has a national jurisdictional reach as it is a Commonwealth legislation. It explicitly excludes certain entities and individuals not directly involved in the management or supervision of superannuation entities unless they are implicated in contraventions that warrant disqualification. The Act’s scope can be extended through subordinate instruments, allowing for further clarification or addition of specific rules and regulations regarding the management of superannuation entities. The disqualification of a person, such as Sean B Drury, is a significant measure under the Act, prohibiting them from acting as a trustee, investment manager, or custodian of a superannuation entity if they are aware of their disqualification status, with serious penalties for non-compliance.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SISA) provides a framework for the regulation and supervision of the superannuation industry in Australia. Section 126A(6) of the SISA mandates that a delegate of the Commissioner of Taxation can disqualify a person from being or acting as a trustee, investment manager, custodian, or responsible officer of a superannuation entity if they believe the person has acted in a way that justifies such a disqualification. This section was used to issue a notice to Sean B Drury, informing him that he has been disqualified under subsection 126A(2) of the SISA due to his role as a responsible officer of a corporate trustee of one or more superannuation entities that contravened the Act.
Under the SISA, the obligations of individuals like Sean B Drury, when serving as a responsible officer, include ensuring compliance with all applicable laws and regulations governing the superannuation industry. This involves adhering to the standards set forth in the SISA and any other relevant legislation. Failure to meet these obligations can lead to disqualification, as evidenced in Sean B Drury’s case.
The SISA also imposes significant consequences for breaches of its provisions. Section 126K of the Act makes it an offence for a disqualified person to act as a trustee, investment manager, custodian, or responsible officer of a superannuation entity. The maximum penalty for this offence is two years imprisonment, underscoring the seriousness with which the Act treats such violations. Additionally, under subsection 126A(5) of the SISA, the disqualification can be revoked either by the authority that imposed it or upon a written application by the disqualified person. This offers a potential path for Sean B Drury to seek reinstatement if he meets the necessary criteria. Furthermore, section 344 of the SISA provides a mechanism for reviewing the decision, allowing Sean B Drury to request reconsideration within 21 days of receiving the notice, provided he submits a written request outlining his reasons for dissatisfaction with the decision.