NOTICE OF DISQUALIFICATION
Superannuation Industry (Supervision) Act 1993
To:
Sovann Korng
HAMPTON PARK VIC 3976
I, Ivan Parrett, a delegate of the Commissioner of Taxation, give you notice as required by subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SIS Act), that I have made a decision to disqualify you from being a trustee or a responsible officer of a body corporate that is a trustee, investment manager or custodian, of a superannuation entity.
I have disqualified you under subsection 126A(1) of the SIS Act as I am satisfied that you have contravened the SIS Act on one or more occasions and the nature, seriousness and number of the contraventions provides grounds for disqualifying you.
The disqualification order takes effect on the day on which this notice is made.
Dated: 4 February 2014.
Ivan Parrett
Assistant Commissioner of Taxation
Per Craig Blair
Note 1:
In accordance with subsection 126A(7) of the SIS Act, particulars of this disqualification notice will be published in the Gazette.
Note 2:
In accordance with subsection 126A(5) of the SIS Act, we may revoke this disqualification order on our own initiative or on written application made by you.
Note 3:
In accordance with section 344 of the SIS Act, if you are a person who is affected by this decision and you are dissatisfied with it, you may ask the Commissioner to reconsider this decision. Such a request must be made in writing within 21 days of the day on which you received notice of the decision and must also give the reasons for making the request.
Overview
The Superannuation Industry (Supervision) Act 1993 was enacted to address the need for robust oversight and regulation within the superannuation industry, aiming to protect the interests of superannuation fund members. The Act was introduced by the Commonwealth Parliament and is designed to ensure the integrity and proper functioning of the superannuation system by imposing obligations on trustees, investment managers, and custodians of superannuation entities. The policy objective behind the Act is to safeguard the financial well-being of superannuation fund members by maintaining high standards of conduct and compliance within the industry. The Act provides the Commissioner of Taxation with the authority to disqualify individuals from being trustees or responsible officers of superannuation entities if they are found to have contravened the provisions of the Act in a manner that warrants such action.
Scope and Application
The Superannuation Industry (Supervision) Act 1993 (SIS Act) applies to trustees, responsible officers, and entities involved in managing superannuation funds, including trustees, investment managers, and custodians. The Act aims to regulate and oversee the superannuation industry to ensure compliance and protect the interests of superannuation fund members. The disqualification provisions under the SIS Act, such as the notice given to Sovann Korng, are targeted at individuals who have contravened the Act's provisions in a manner that warrants disqualification from participating in the management of superannuation funds. The jurisdiction of the SIS Act is national, applying across all states and territories in Australia. The Act allows for the issuance of disqualification orders by delegates of the Commissioner of Taxation, and these orders can be published in the Gazette. The SIS Act also provides avenues for the revocation of disqualification orders and the reconsideration of decisions by the Commissioner if an affected person is dissatisfied with the outcome. The Act's provisions can be further extended or specified through subordinate instruments, although these are not detailed in the notice itself.
Key Provisions
The Superannuation Industry (Supervision) Act 1993 (SIS Act) includes provisions that allow for the disqualification of individuals from certain roles within the superannuation industry. Section 126A(6) of the SIS Act provides the mechanism by which a delegate of the Commissioner of Taxation can issue a notice of disqualification, which was done in the case of Sovann Korng, prohibiting him from being a trustee or responsible officer of a body corporate that manages superannuation entities such as trustees, investment managers, or custodians. This disqualification is based on a determination under section 126A(1) that Sovann Korng has contravened the SIS Act in a manner that justifies his disqualification. The decision to disqualify him takes effect on the date the notice is issued.
The obligations imposed by the SIS Act on individuals such as Sovann Korng include adherence to the various provisions of the Act that govern the management and administration of superannuation entities. These provisions are designed to ensure the proper handling of superannuation funds, protect the interests of superannuation members, and maintain the integrity of the superannuation system. By disqualifying Sovann Korng, the Act enforces compliance with these standards and prevents individuals who have demonstrated a pattern of non-compliance from holding positions of responsibility within the superannuation industry.
Under the SIS Act, the consequences of breaching its provisions can be severe. The Act includes various offences that can result in civil or criminal penalties. For instance, under section 126A(1), the grounds for disqualifying an individual are based on contraventions of the Act, and such contraventions can lead to the imposition of penalties as outlined in other sections of the Act. While the specific penalties are not detailed in the notice, the Act generally provides for substantial fines and, in more serious cases, imprisonment. The maximum penalties for breaches of the SIS Act can vary depending on the nature and severity of the offence, but they are intended to deter non-compliance and enforce adherence to the regulatory requirements governing the superannuation industry.