Notice of Disqualification – Andrew Falso - 22 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for stringent regulation and oversight of the superannuation industry in Australia. This legislation was introduced by the Australian Parliament to protect the interests of superannuation fund members by ensuring that those who manage and oversee these funds adhere to high standards of conduct and compliance. The overarching policy objective of the SISA is to maintain the integrity and stability of the superannuation system, thereby safeguarding the financial well-being of retirement savers. The Act empowers the Commissioner of Taxation to disqualify individuals from performing certain roles within the superannuation industry if they are found to have contravened the provisions of the Act, particularly if such contraventions are serious enough to warrant such action. This legislative framework aims to deter misconduct and promote accountability within the industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) is a Commonwealth Act that applies to all entities and individuals involved in the superannuation industry in Australia, including trustees, responsible officers, and other persons who are involved in the management or administration of superannuation funds. The Act establishes the framework for the regulation of the superannuation industry, including the disqualification of individuals who have contravened the provisions of the Act. The disqualification power applies to any person who has contravened the SISA and whose actions provide grounds for disqualification, such as a responsible officer of a corporate trustee who has failed to comply with their obligations under the Act. The disqualification is a serious matter and carries a maximum penalty of two years imprisonment if the disqualified person continues to act in a capacity that is prohibited by the Act. The disqualification decision is published as a Notifiable Instrument in the Federal Register of Legislation and can be revoked on the initiative of the Commissioner or upon written application by the disqualified person. The Commissioner can also reconsider the decision if the affected person lodges a written request within 21 days of receiving notice of the decision.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to this notice include subsection 126A(2) and subsection 126A(6). According to subsection 126A(2), a person can be disqualified from performing certain roles related to superannuation entities if the relevant authority is satisfied that the person has contravened the SISA and that the contraventions are serious enough to warrant disqualification. Subsection 126A(6) then requires the delegate of the Commissioner of Taxation to give written notice of the disqualification to the person affected. In this case, Andrew Falso has been disqualified as a result of being satisfied that he contravened the SISA while acting as a responsible officer for a corporate trustee of one or more superannuation entities. The Act imposes several obligations and requirements on the parties it governs. For Andrew Falso, this means he is prohibited from being or acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer or a body corporate that is a trustee, investment manager, or custodian of a superannuation entity. Additionally, under section 126K of the SISA, it is an offence for a disqualified person to continue to act in such roles if they are aware of their disqualification status. This reflects the serious nature of the contraventions that led to the disqualification. The legislation also outlines specific consequences for breaches of the Act. Under section 126K, a disqualified person who knowingly continues to act in restricted roles can be subject to criminal penalties. The maximum penalty for committing this offence is two years in jail. This severe penalty underscores the importance of adhering to the requirements of the SISA and the potential legal ramifications for non-compliance. Additionally, under subsection 126A(5) of the SISA, the disqualification can be revoked either on the initiative of the relevant authority or upon written application by the disqualified person. This provides a potential pathway for Andrew Falso to seek reinstatement of his eligibility to act in certain roles related to superannuation entities. Lastly, the Act provides a mechanism for review of the disqualification decision. Under section 344 of the SISA, Andrew Falso has the right to request a reconsideration of the decision if he is not satisfied with it. This request must be made in writing within 21 days of receiving notice of the decision and must include the reasons why he believes the decision is wrong. This provision ensures that there is a formal process in place for challenging decisions made under the Act, thereby offering a degree of recourse to those affected by such decisions.