Notice of Disqualification – Wayne James Trattles - 30 January 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide a regulatory framework for the supervision of the superannuation industry in Australia. This legislation was introduced to address the need for stringent oversight and regulation to protect the interests of superannuation fund members, ensuring that trustees and responsible officers adhere to the highest standards of conduct and compliance. The Act was passed by the Commonwealth Parliament with the policy objective of maintaining the integrity and stability of the superannuation industry by imposing penalties and disqualifications on those who fail to comply with the regulatory requirements. The disqualification of Wayne James Trattles under subsection 126A(2) of the SISA exemplifies the Act’s intent to hold responsible officers accountable for the actions of their corporate trustees, thereby safeguarding the interests of superannuation fund members.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers within corporate trustees of superannuation entities, impacting their eligibility to continue in their roles if certain conditions are met. Specifically, under subsection 126A(2) of the SISA, an individual can be disqualified if the corporate trustee they serve has contravened the Act, and the number and seriousness of these contraventions provide grounds for disqualification. This disqualification extends across the Commonwealth of Australia, and the decision is made by a delegate of the Commissioner of Taxation. Once disqualified, the individual is prohibited from acting as a trustee, investment manager, or custodian of a superannuation entity or being a responsible officer for such roles, as outlined in section 126K of the SISA. The disqualification is effective immediately upon notice and can be subject to revocation at the discretion of the Commissioner or upon application by the disqualified person. Additionally, any decision to disqualify can be subject to reconsideration by the Commissioner if requested in writing within 21 days of receiving the notice, as stipulated in section 344 of the SISA.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains provisions for disqualifying individuals who hold responsible positions within superannuation entities. Under subsection 126A(2) of the SISA, a person can be disqualified if they were a responsible officer of a corporate trustee when the corporate trustee contravened the SISA on one or more occasions, and the nature and frequency of the contraventions warrant such disqualification. The notice of disqualification, as given to Wayne James Trattles under subsection 126A(6), specifies that he has been disqualified because it was determined that the corporate trustee had contravened the SISA, and Wayne was a responsible officer at the time. This disqualification becomes effective on the day the notice is issued. The Act imposes certain obligations and requirements on individuals who are or were responsible officers within superannuation entities. These individuals must ensure compliance with the SISA to avoid disqualification. They are expected to be aware of any breaches by the corporate trustee and take appropriate action if necessary. Furthermore, the Act mandates that any disqualified person must not act as a trustee, investment manager, or custodian of a superannuation entity, nor be a responsible officer or a body corporate associated with such roles, as outlined in section 126K of the SISA. Breaches of the disqualification provisions carry significant consequences. Specifically, section 126K imposes a criminal offence on any disqualified person who knowingly acts in a prohibited capacity. The maximum penalty for committing this offence is imprisonment for up to two years. This stringent penalty underscores the importance of adhering to the disqualification requirements set out by the Act. Additionally, the notice of disqualification may be published as a Notifiable Instrument in the Federal Register of Legislation, as stated in subsection 126A(7) of the SISA. In terms of recourse, subsection 126A(5) of the SISA provides for the possibility of revoking the disqualification, either on the initiative of the Commissioner of Taxation or upon the written application of the disqualified person. Furthermore, if a person is dissatisfied with the disqualification decision, they can request the Commissioner to reconsider it under section 344 of the SISA. This request must be made in writing within 21 days of receiving notice of the disqualification decision and must detail the reasons for the dissatisfaction.