Notice of Confirmation of Disqualification – Zoran Aleksovski – 17 December 2024

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to regulate the administration and management of superannuation entities, aiming to protect the interests of superannuation fund members by ensuring that trustees and responsible officers act in the best interests of their members. The Act was introduced to address the need for a robust regulatory framework to oversee the superannuation industry, prevent misconduct, and maintain the integrity of superannuation funds. The policy objective of the SISA is to ensure that superannuation entities are managed responsibly and ethically, thereby safeguarding the retirement savings of Australians. The enactment of the SISA by the Australian Parliament underscores the importance of maintaining public trust in the superannuation system by imposing strict regulatory measures and penalties for non-compliance.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the superannuation industry, including trustees, responsible officers, trustees of self-managed superannuation funds, and corporate trustees. It covers a broad range of conduct and transactions related to superannuation entities, including investment management, fund operations, and compliance with legislative and regulatory requirements. The Act operates at the national level, applying across Australia and ensuring a consistent regulatory framework for the supervision of the superannuation industry. Notably, the Act does not exempt any particular class of person or entity from its scope, though it does provide for various exclusions and exemptions in specific circumstances, such as for certain small APRA-regulated funds. The application and enforcement of the Act can be extended or restricted through subordinate instruments, such as regulations or legislative instruments, which may specify detailed compliance requirements or carve out certain activities from the Act’s purview. The disqualification of individuals from acting as trustees or responsible officers is a significant enforcement mechanism under the Act, particularly when it comes to maintaining the integrity and proper functioning of the superannuation system.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains provisions for disqualifying individuals from holding positions of responsibility in superannuation entities. Section 344(6) of the Act requires the delegate of the Commissioner of Taxation to notify the disqualified individual of the decision to confirm their disqualification. In this case, Zoran Aleksovski has been disqualified from being a trustee or a responsible officer of a superannuation entity, as per the notice issued on 17 December 2024. This decision follows a previous disqualification notice issued on 18 October 2024 and is based on the finding that Aleksovski was a responsible officer of a corporate trustee that contravened the SISA on one or more occasions, and that the seriousness of these contraventions justifies the disqualification. Under the Act, a responsible officer or trustee of a superannuation entity has a duty to comply with all regulatory requirements to ensure the proper administration and management of the superannuation fund. This includes adhering to the standards set out in the SISA, such as maintaining adequate records, reporting to the Australian Taxation Office, and acting in the best interests of the members of the superannuation fund. Failure to meet these obligations can result in disciplinary action, including disqualification from holding a responsible position in the superannuation industry. The SISA imposes significant penalties for breaches of its provisions. Section 126K of the Act stipulates that it is an offence for a disqualified person to act as, or be, a trustee, investment manager, or custodian of a superannuation entity, or a responsible officer of a corporate trustee. The maximum penalty for this offence is two years imprisonment, reflecting the serious nature of the contraventions and the potential impact on the members of the superannuation fund. Additionally, any entity found to be in breach of the SISA may face civil or criminal consequences, including fines and legal action to rectify the non-compliance. For individuals who are dissatisfied with the decision to disqualify them, the SISA provides a mechanism for review. Section 344(8) allows the Administrative Review Tribunal to review the decision within 28 days of the notification being given. This review process provides an opportunity for the disqualified individual to challenge the decision and present any mitigating factors or evidence that may influence the outcome. The outcome of the review can result in the disqualification being overturned, subject to the findings of the Tribunal.