Unformatted text preview: C for follow-up action
■ tax the superannuation funds as non-complying, and/ or
■ assess individuals who have participated in the schemes – the withdrawn beneﬁts will be taxed at
the individual’s marginal rate and penalties will be
imposed where applicable. or to impose licence conditions.
■ A failure to comply with certain provisions by any person (even if they are unlicensed) may give ASIC
grounds for exercising its administrative powers to ban
the person permanently (or for a speciﬁed period of
time) from providing ﬁnancial services.
■ ASIC may take criminal or civil action (depending on the nature and severity of the breach) for breaches
of the laws relating to advice and disclosure, and
under the consumer protection provisions of the
ASIC Act 2001. Depending on the offence, a range
of penalties can apply, including injunctions, ﬁnes of Where the Tax Ofﬁce suspects that self managed up to $220,000 for individuals and $1,100,000 for superannuation funds are being used to gain illegal early corporations or imprisonment for up to ﬁve years. access to superannuation, it may recommend criminal
investigations of both the promoters and participants.
These investigations are often done jointly with ASIC and
may lead to the referral of matters to the Commonwealth
Director of Public Prosecutions. Parties other than ASIC are also able to take action to
enforce ﬁnancial services laws. For example, competitors
may take private action against funds or advisers. Also,
clients or members who have suffered ﬁnancial loss may
seek redress through the Superannuation Complaints FAILURE TO ASSURE THE FUND’S
OPERATIONAL FRAMEWORK Tribunal, other external dispute resolution avenues or the
Courts. Failure to establish and maintain robust operational and
information technology (IT) systems to service the fund’s
choice of superannuation fund requirements will impact
on its prudential risk rating and the intensity of APRA’s
supervisory actions. CHOICE OF SUPERANNUATION FUND ■ 15 16 ■ CHOICE OF SUPERANNUATION FUND 04 compliance approaches CHOICE OF S...
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