Notice of Disqualification – Benjamin Stokes - 8 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Parliament of Australia to regulate the superannuation industry, ensuring it operates in the best interests of its members. The act addresses the problem of misconduct and non-compliance within the superannuation industry, aiming to protect the financial interests and retirement savings of superannuation members. The act provides a framework for the supervision of trustees, investment managers, custodians, and other responsible officers, establishing standards for their conduct and operations. The Superannuation Industry (Supervision) Act 1993 aims to maintain the integrity and stability of the superannuation system by imposing penalties for breaches and allowing for the disqualification of individuals found to be in breach of the act. This notice of disqualification is a direct consequence of the policy objective to enforce compliance and deter misconduct within the regulated industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation entities, including trustees, investment managers, custodians, and responsible officers of these entities. The Act has a national reach, operating across the Commonwealth of Australia. The scope of the Act includes the oversight and regulation of the superannuation industry to ensure compliance with statutory requirements and the protection of superannuation benefits. Exclusions and exemptions from the Act are limited, as it is designed to comprehensively cover the supervision and administration of superannuation funds. The Act's provisions can be extended or modified through subordinate instruments, allowing for adjustments to regulatory requirements and penalties. The disqualification of Benjamin Stokes under the SISA underscores the Act's enforcement mechanisms to maintain the integrity and proper functioning of the superannuation industry.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) provides the legislative framework for the regulation and supervision of the superannuation industry in Australia. Under this Act, specific provisions allow for the disqualification of individuals who are found to have contravened the law, with significant implications for their professional activities within the industry. Section 126A(1) empowers a delegate of the Commissioner of Taxation to disqualify an individual if they are satisfied that the individual has contravened the SISA and the nature of the contravention warrants such action. Section 126A(6) mandates that a notice of disqualification must be given to the individual, as seen in the notice to Benjamin Stokes dated 8 July 2025. The obligations imposed by the SISA on individuals such as Benjamin Stokes include compliance with all relevant provisions of the Act. Once disqualified, the individual is legally prohibited from acting or being involved in certain capacities within the superannuation industry. Specifically, section 126K makes it an offence for a disqualified person to serve as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer or part of a body corporate that holds such roles. The Act does not permit such activities by disqualified individuals, thereby ensuring the integrity and proper management of superannuation funds. Failure to adhere to these provisions can result in serious consequences. Under section 126K, the penalty for knowingly being or acting in any of the prohibited roles after being disqualified can lead to criminal charges. The maximum penalty for this offence is two years in jail, highlighting the seriousness with which the Act treats breaches of these provisions. Additionally, the disqualification itself is a significant deterrent and sanction, effectively barring the individual from participating in the regulated aspects of the superannuation industry. This notice and the subsequent disqualification are intended to protect the interests of superannuation fund members and maintain the standards of the industry.