Notice of Disqualification – Simon Fossilo

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide a regulatory framework for the supervision of superannuation industry participants, ensuring the protection of members' interests and maintaining the integrity of the superannuation system. The Act was introduced to address the need for a robust regulatory environment that could effectively oversee and manage the operations of superannuation entities, trustees, and related service providers to prevent misconduct and protect superannuation savings. Enacted by the Commonwealth Parliament, the policy objective of the SISA is to safeguard the superannuation industry by establishing standards for the conduct, disclosure, and reporting of superannuation entities, and by providing mechanisms for enforcement and penalties for non-compliance. The Act aims to ensure that the superannuation industry operates in a manner that is transparent, accountable, and in the best interest of superannuation members.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and oversight of superannuation entities within Australia. Specifically, the Act targets trustees, investment managers, custodians, responsible officers, and corporate trustees of superannuation entities, ensuring that they adhere to strict standards of conduct and governance. The Act's jurisdiction is national, covering the entire Commonwealth of Australia, thereby affecting individuals and entities across all states and territories. Exclusions or exemptions from the Act are not explicitly stated in the provided text, although it is implied that those disqualified under the Act are excluded from performing the specified roles. The application of the Act can be extended or restricted through subordinate instruments, although such specifics are not detailed here. Notably, the Act provides for the disqualification of individuals who contravene its provisions, with the consequences of such disqualification including the prohibition from acting in certain capacities within the superannuation industry, and potential criminal penalties for those who continue to do so despite being aware of their disqualification.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to this notice include subsection 126A(1) and subsection 126A(6). Under subsection 126A(1), the Commissioner of Taxation has the power to disqualify an individual from performing certain roles within the superannuation industry if they are satisfied that the individual has contravened the SISA. Subsection 126A(6) mandates that the Commissioner must give notice to the disqualified individual in writing. In this case, the notice was given to Simon Fossilo, informing him of his disqualification. The Act imposes several obligations and requirements on the parties it governs. The most pertinent of these is the prohibition on disqualified persons from acting or being involved as trustees, investment managers, custodians, responsible officers, or body corporates of a superannuation entity. This is outlined in section 126K of the SISA. Simon Fossilo, having been disqualified, must comply with this requirement and refrain from engaging in any capacity that would involve him managing or overseeing superannuation funds. Failure to comply with the provisions of the SISA can lead to significant consequences. Under section 126K, it is an offence for a disqualified person to act in any of the prohibited roles. The maximum penalty for this offence is two years imprisonment. This underscores the seriousness with which the Act treats contraventions of its provisions. Additionally, under subsection 126A(5), the disqualification can be revoked either by the Commissioner on their own initiative or following a written application from the disqualified person. However, the onus is on the disqualified individual to apply for revocation if they believe the disqualification was unjust or if circumstances have changed. If Simon Fossilo is not satisfied with the decision to disqualify him, he has the right to request the Commissioner to reconsider the decision. This request must be made in writing within 21 days of receiving the notice of disqualification. The request should outline the reasons why Simon believes the decision is wrong. This provision is detailed in section 344 of the SISA and provides a mechanism for disputing the Commissioner's decision, ensuring that there is a formal process for review.