Notice of Disqualification – Chantelle Karlovcec – 12 March 2026

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to establish a regulatory framework for the superannuation industry in Australia, aiming to protect the interests of superannuation fund members by ensuring the responsible administration of superannuation funds. This legislation was introduced to address the need for oversight and regulation within the superannuation sector, given its significant role in the financial well-being of many Australians. The Act is administered by the Australian Parliament, with a policy objective to enhance transparency, accountability, and the proper management of superannuation funds. The enactment of the SISA was crucial in creating a robust system that deters misconduct and ensures that trustees, investment managers, and custodians of superannuation entities adhere to high standards of conduct and compliance.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) is a Commonwealth statute that applies to individuals and entities involved in the management of superannuation funds. Specifically, the Act imposes obligations and restrictions on trustees, investment managers, custodians, responsible officers, and corporate trustees of superannuation entities. The geographic reach of the Act is national, encompassing all superannuation entities operating within Australia, irrespective of the state or territory. The Act's primary purpose is to ensure the proper management and supervision of superannuation funds, safeguarding the interests of fund members. The notice of disqualification issued under the Act applies to individuals who have contravened the provisions of the SISA, with the disqualification barring them from acting in roles such as trustees, investment managers, or custodians of superannuation entities. Additionally, the Act stipulates that it is an offence for a disqualified person to continue acting in these roles, with potential penalties including imprisonment for up to two years. The disqualification can be revoked either by the authority on its own initiative or upon a written application by the disqualified person. Furthermore, the Act provides a mechanism for reconsideration of the disqualification decision by the Commissioner if the affected party is dissatisfied with the initial decision.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes provisions for the disqualification of individuals who have contravened the Act. Section 126A(2) allows for disqualification where there is evidence of repeated contraventions, and this section was invoked in the case of Chantelle Karlovcec. Subsection 126A(6) mandates that a notice of disqualification must be issued, as seen in the notice dated 12 March 2026. This notice, signed by Ben Kelly, a delegate of the Commissioner of Taxation, informs Chantelle of her disqualification and the reasons behind it, which include multiple contraventions of the SISA. The Act imposes several obligations and requirements on the disqualified person. Under section 126K, it is an offence for a disqualified person to act as a trustee, investment manager, custodian of a superannuation entity, or a responsible officer of a body corporate that serves in these roles. These roles are critical in the management and oversight of superannuation entities, and the Act ensures that individuals who have been found to contravene its provisions are barred from such responsibilities. This prohibition is intended to protect the interests of superannuation fund members and maintain the integrity of the superannuation industry. Failure to comply with the disqualification can result in significant consequences. Section 126K outlines that knowingly acting in the prohibited roles while being disqualified is a criminal offence. The maximum penalty for such an offence is a two-year jail term, as stipulated in the Act. This severe penalty reflects the seriousness with which the Act treats breaches of its provisions and the importance of adhering to the regulatory framework governing superannuation entities. Additionally, the Act provides avenues for review and reconsideration. Section 344 allows a disqualified person to request the Commissioner to reconsider the decision if they are dissatisfied with it, provided the request is made in writing within 21 days of receiving the notice of disqualification and includes reasons for the dissatisfaction.