Notice of Disqualification – Christopher John Lonergan - 31 March 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to regulate the superannuation industry in Australia, addressing issues such as inadequate financial management, lack of transparency, and breaches of fiduciary duties by trustees. The Act is administered by the Australian Taxation Office, and its policy objective is to protect the interests of superannuation fund members by ensuring that trustees and responsible officers adhere to high standards of conduct and compliance. This legislative framework allows the Commissioner of Taxation to disqualify individuals who are responsible officers of corporate trustees and have been involved in serious contraventions of the SISA. Such disqualifications are intended to deter and prevent unfit individuals from managing superannuation entities. Under the SISA, disqualified persons face significant penalties if they continue to act as trustees, investment managers, or custodians, with potential imprisonment of up to two years. The Act also provides mechanisms for the review and possible revocation of disqualifications, ensuring a balance between enforcement and fairness.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers of corporate trustees in the superannuation industry, ensuring compliance with regulatory standards to protect superannuation funds. The Act’s jurisdiction extends across Australia, impacting entities and individuals involved in the management of superannuation entities. This disqualification notice pertains to Christopher John Lonergan, who was a responsible officer of a corporate trustee when the contraventions occurred. The notice outlines that the disqualification is a direct consequence of the corporate trustee's contraventions of the SISA, with the seriousness of these breaches justifying the disqualification. The notice further indicates that the disqualification will be published as a notifiable instrument in the Federal Register of Legislation, making it a matter of public record. The Act also stipulates that it is an offence for a disqualified person to continue acting as a trustee, investment manager, or custodian of a superannuation entity, with penalties including up to two years in jail. Additionally, the disqualification can be revoked either by the authority on its own initiative or upon a written application by the disqualified person. For those dissatisfied with the decision, the Act provides a mechanism to request a reconsideration by the Commissioner within 21 days of receiving the notice.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains various provisions that govern the conduct of trustees, investment managers, custodians, and responsible officers within the superannuation industry. Under section 126A(2), the Commissioner of Taxation has the authority to disqualify a person from being a trustee, investment manager, custodian, or responsible officer of a superannuation entity if they are satisfied that the person has contravened the SISA and that the contraventions were serious enough to warrant disqualification. This power is exercised when a responsible officer is found to have been associated with a corporate trustee that has breached the SISA. Section 126A(6) of the SISA requires the Commissioner, or a delegate such as Ben Kelly in this case, to provide written notice of the disqualification to the affected individual, in this instance, Christopher John Lonergan. This notice specifies the grounds for the disqualification and informs the individual that they are disqualified from holding the specified roles within a superannuation entity. The disqualification takes immediate effect upon issuance of the notice. The SISA imposes several obligations on the parties it governs. Trustees, investment managers, custodians, and responsible officers must adhere to the provisions of the SISA, including but not limited to, the prudent management of superannuation funds, compliance with reporting requirements, and adherence to governance standards. Failure to comply with these obligations can lead to serious consequences, including disqualification. Under section 126K of the SISA, it is an offence for a disqualified person to act as a trustee, investment manager, custodian, or responsible officer of a superannuation entity if they know they are disqualified. The maximum penalty for this offence is two years imprisonment. Additionally, the disqualification can be revoked either by the Commissioner on their own initiative or upon a written application by the disqualified person, as outlined in subsection 126A(5) of the SISA. If an affected individual is dissatisfied with the disqualification decision, they can request the Commissioner to reconsider the decision within 21 days of receiving the notice, as per section 344 of the SISA.