Or to impose licence conditions a failure to comply

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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tax the superannuation funds as non-complying, and/ or ■ assess individuals who have participated in the schemes – the withdrawn benefits will be taxed at the individual’s marginal rate and penalties will be imposed where applicable.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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