Amended Notice of Variation of Disqualification – Timothy Daly - 16 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for effective oversight and regulation of the superannuation industry in Australia. This legislation was introduced by the Australian Parliament to ensure that the superannuation system operates in the best interests of members and beneficiaries, and to maintain public confidence in the industry. The SISA established the Australian Prudential Regulation Authority (APRA) as the primary regulator, which was tasked with overseeing the prudential regulation of the superannuation industry to protect members' interests. The policy objective of the Act is to promote the efficient, honest, and economical administration of superannuation funds, as well as to protect the interests of members by ensuring that superannuation funds are managed in a prudent and responsible manner. In the case of Timothy Daly, the notice of variation of disqualification under subsection 126A(6) of the SISA highlights the enforcement mechanisms within the Act. Emma Rosenzweig, a delegate of the Commissioner of Taxation, has disqualified Mr. Daly due to his role as a responsible officer of a corporate trustee that contravened the SISA. This disqualification aims to uphold the integrity of the superannuation industry by preventing individuals involved in significant breaches from holding positions of responsibility. The notice also informs Mr. Daly of his right to request a reconsideration of the decision within 21 days, as well as the potential criminal penalties for acting as a trustee or responsible officer while disqualified.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the supervision and management of superannuation funds within Australia. Specifically, the Act pertains to responsible officers of corporate trustees who manage these funds, ensuring that they comply with the regulatory requirements set forth by the Act. The legislation applies across the entire Commonwealth, meaning it has a national jurisdictional reach. The Act’s provisions cover the conduct and transactions of entities and individuals involved in the superannuation industry, including trustees, investment managers, and custodians. Notably, the Act prohibits disqualified persons from acting in any capacity related to superannuation entities, including being a trustee, investment manager, or custodian. The disqualification process outlined in the Act is stringent, with penalties including up to two years in jail for knowingly acting in a prohibited capacity. The Act also allows for the revocation of disqualifications either on the initiative of the authorities or through a written application by the disqualified person. Additionally, affected parties have the right to request a reconsideration of the decision within 21 days of receiving notice, providing reasons for dissatisfaction with the decision. The Act extends its application through subordinate instruments, which can further define and refine the scope and implementation of its provisions.

Key Provisions

The key provisions of the notice pertain to the disqualification of Timothy Daly, as stipulated in subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA). The notice informs Timothy Daly that he has been disqualified by a delegate of the Commissioner of Taxation, Emma Rosenzweig, because she is satisfied that the corporate trustee of one or more superannuation entities has contravened the SISA on multiple occasions, and at the time of these contraventions, Timothy Daly was a responsible officer of the corporate trustee. This disqualification arises from the number of contraventions that provide grounds for disqualifying him. The disqualification is effective from the day it is issued, as outlined in the notice dated 16 July 2025. The Act imposes several obligations and requirements on Timothy Daly and the relevant corporate trustees. Firstly, it requires that any contraventions of the SISA by the corporate trustee be reported and managed appropriately. Timothy Daly, as a responsible officer, must ensure compliance with the SISA and take steps to mitigate any risks of contravention. Additionally, the Act mandates that details of this disqualification notice be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and public awareness of such actions. Under section 126K of the SISA, there are severe consequences for breaches of the Act. 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 or a body corporate that holds such a role. The maximum penalty for committing this offence is a two-year jail sentence, underscoring the seriousness with which the Act treats such violations. Additionally, the Act provides mechanisms for the disqualification to be revoked either on the initiative of the Commissioner or upon a written application by the disqualified person, as outlined in subsection 126A(5) of the SISA. If Timothy Daly is affected by this decision and is dissatisfied, he has the right to request the Commissioner to reconsider the decision within 21 days of receiving notice, as per section 344 of the SISA, provided that he submits a written request outlining the reasons for his dissatisfaction.