Notice of Disqualification – Cory Dickenson - 15 January 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide a framework for the regulation and supervision of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members by ensuring that trustees and other related personnel operate with integrity and competence. This legislation was introduced by the Australian Parliament to address issues of misconduct, incompetence, and breaches of fiduciary duties within the superannuation sector, which could potentially harm the financial security of superannuation fund members. The SISA sets out various provisions for the licensing and disqualification of individuals involved in the management of superannuation funds, ensuring that only fit and proper persons are entrusted with such responsibilities. The policy objective of the Act is to maintain high standards of conduct and accountability within the superannuation industry, thereby safeguarding the retirement savings of Australians.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the superannuation industry in Australia. Specifically, the Act covers trustees, investment managers, and custodians of superannuation entities, as well as responsible officers or bodies corporate associated with these roles. The geographic reach of the Act is national, applying across all states and territories of Australia. The Act includes provisions for disqualifying individuals from participating in the superannuation industry if they contravene its provisions, with the seriousness of the contravention being a determining factor. Exclusions or exemptions from the Act's provisions are not explicitly stated in the notice, but the Act may include such provisions elsewhere. The application of the Act can be extended or restricted through subordinate instruments, although this is not detailed in the notice. Disqualifications under the Act are published as Notifiable Instruments in the Federal Register of Legislation, and there are significant penalties, including up to two years in jail, for disqualified persons who continue to act in restricted capacities.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes provisions that allow for the disqualification of individuals from certain roles within the superannuation industry. Under subsection 126A(1) of the SISA, a person can be disqualified from acting as a trustee, investment manager, or custodian of a superannuation entity if they have contravened the SISA in a manner that warrants such a disqualification. The disqualification, as notified in the document, is effective from the date it is made. This was applied to Cory Dickenson, as detailed in the notice dated 15 January 2025 issued by Emma Rosenzweig, a delegate of the Commissioner of Taxation. The SISA imposes obligations on individuals to adhere to the regulations governing the superannuation industry. Those roles specified in the act, such as trustees, investment managers, or custodians, must ensure that they comply with all the provisions of the SISA. Failure to do so can lead to personal disqualification, as evidenced in the case of Cory Dickenson. The act also requires that any contraventions or breaches be reported, and that the Commissioner of Taxation is notified of any disqualifications. Breaching the SISA by acting in a disqualified capacity is a serious matter. Under section 126K of the SISA, it is an offence for a disqualified person to be, or act 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. The penalty for such an offence can be significant, with a maximum penalty of two years imprisonment. This serves as a deterrent against non-compliance and reinforces the importance of adhering to the act’s provisions. Additionally, the SISA provides mechanisms for the potential revocation of a disqualification. Under subsection 126A(5), the disqualification may be revoked either by the Commissioner on their own initiative or upon a written application from the disqualified person. For those who feel their disqualification is unjust, section 344 of the SISA allows for a reconsideration request to be made within 21 days of receiving the notice of disqualification. This request must be in writing and include the reasons why the decision is believed to be incorrect.