Notice of Disqualification - Vicki Maree Leverett - 8 January 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address issues and gaps in the oversight and management of superannuation funds in Australia. This legislation was introduced by the Commonwealth Parliament to ensure the integrity and efficient operation of the superannuation industry. It aims to protect the interests of superannuation fund members by imposing regulatory and compliance requirements on trustees, investment managers, and custodians of superannuation entities. The SISA provides the Commissioner of Taxation with the authority to disqualify individuals from acting in responsible roles within the superannuation industry if they are found to have contravened the provisions of the Act. The Act also includes provisions for the revocation of disqualifications and the right for affected individuals to seek reconsideration of the Commissioner's decisions. The policy objective of the SISA is to maintain the stability and trustworthiness of the superannuation system by ensuring that those in responsible positions adhere to the highest standards of governance and compliance.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers of corporate trustees involved in the management of superannuation entities, which include superannuation funds, retirement savings accounts, and other retirement-related entities. This legislation operates at the Commonwealth level, thereby covering entities and individuals across Australia, irrespective of state or territory boundaries. The act’s primary focus is on ensuring compliance with stringent standards within the superannuation industry to protect the interests of superannuation fund members. Notably, the act includes provisions for disqualifying individuals who are responsible officers if the corporate trustee under their oversight has contravened the SISA, with the disqualification taking immediate effect upon issuance. The act also extends its application through subordinate instruments which may detail specific contraventions or additional conditions under which a disqualification may be applied. The seriousness of the contraventions and the role of the individual in the corporate trustee at the time of the breach are key factors in determining the applicability of the disqualification provisions.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes several provisions that are crucial for its enforcement. Section 126A(6) mandates that a delegate of the Commissioner of Taxation must provide a disqualified individual with a notice that outlines the reasons for their disqualification. In this case, Vicki Maree Leverett has been disqualified under subsection 126A(2) due to her role as a responsible officer of a corporate trustee that contravened the SISA, with the seriousness of the contraventions justifying the disqualification. This disqualification is effective immediately upon issuance of the notice. Additionally, subsection 126A(7) requires that details of the disqualification be published as a Notifiable Instrument in the Federal Register of Legislation. The Act imposes various obligations on parties and entities it governs. For instance, section 126K stipulates that it is an offence for a disqualified person who is aware of their disqualification to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer of a body corporate that holds such a role. This ensures that disqualified individuals are prevented from continuing their involvement in the management of superannuation entities, thereby protecting the interests of superannuation fund members. Breaching the provisions of the SISA can result in severe consequences. Under section 126K, knowingly acting in a prohibited capacity as a disqualified person carries a maximum penalty of two years imprisonment. This serves as a deterrent against non-compliance and highlights the seriousness of the Act's requirements. Furthermore, the disqualification can be revoked either on the initiative of the delegate or upon a written application by the disqualified individual, as outlined in subsection 126A(5). This provision allows for some flexibility in the enforcement of the Act, providing a potential avenue for review and reinstatement. For individuals affected by the disqualification and dissatisfied with the decision, section 344 of the SISA offers recourse. It allows the Commissioner to reconsider the decision if a written request is made within 21 days of receiving the notice, providing an opportunity for the individual to present their case and seek rectification. This mechanism ensures that there is a formal process for appealing or challenging the decision, promoting fairness in the administration of the Act.