Notice of Disqualification – Damien Ussia - 31 March 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to regulate the superannuation industry in Australia, ensuring the protection of superannuation funds and the rights of superannuation members. The Act was introduced to address the need for a comprehensive regulatory framework governing superannuation entities, trustees, investment managers, and custodians, aiming to prevent misconduct and maintain the integrity of the superannuation system. The SISA is administered by the Australian Parliament, with the objective of safeguarding the financial interests of superannuation members and promoting efficient, honest, and responsible management of superannuation funds. This legislation includes provisions for the disqualification of individuals from participating in the superannuation industry if they are found to have engaged in conduct that warrants such action, as illustrated in the notice of disqualification issued to Damien Ussia under subsection 126A(6) of the SISA.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to responsible officers of corporate trustees of superannuation entities, ensuring that they adhere to certain standards of conduct and regulatory compliance within the superannuation industry. The Act operates on a national scale, impacting individuals and entities across all states and territories of Australia. This legislation specifically targets the conduct of responsible officers and the entities they represent, particularly focusing on compliance with superannuation laws. Exclusions or exemptions within the Act are limited, and its application is broad, extending to various types of superannuation entities. The Act's provisions can be further clarified or modified through subordinate instruments, which can provide additional regulations or guidelines to ensure its effective enforcement. Under the Act, individuals such as Damien Ussia can be disqualified from acting as a responsible officer if they are found to have contravened the Act's provisions, particularly when their role involves the management or oversight of superannuation funds. The disqualification is a significant measure designed to maintain the integrity of the superannuation industry. Additionally, the Act stipulates that disqualified individuals cannot act as trustees, investment managers, or custodians of superannuation entities, with serious penalties, including imprisonment, for any violations of this restriction. The Act also allows for the revocation of disqualification under certain conditions, providing a pathway for individuals to potentially return to their roles if the circumstances warrant it. Furthermore, the Commissioner has the authority to reconsider any decision that affects an individual adversely, offering a mechanism for appeal within a specified timeframe.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes provisions that allow for the disqualification of individuals who have been associated with corporate trustees of superannuation entities found to have contravened the Act. Specifically, subsection 126A(2) of the SISA empowers the Commissioner of Taxation to disqualify an individual from being a responsible officer of a corporate trustee if the corporate trustee has contravened the Act and the individual was a responsible officer at the time. The disqualification takes immediate effect once it is issued, as stated in subsection 126A(6) of the SISA. In the case of Damien Ussia, he has been disqualified under these provisions because the Commissioner is satisfied that the corporate trustee of one or more superannuation entities has contravened the SISA on multiple occasions, and Damien was a responsible officer during these contraventions. The seriousness of the contraventions provided grounds for this disqualification. The notice of disqualification, dated 31 March 2025, informs Damien that he is disqualified from holding any position as a responsible officer for a corporate trustee of a superannuation entity. Furthermore, under subsection 126A(7) of the SISA, the details of this disqualification will be published as a Notifiable Instrument in the Federal Register of Legislation. The SISA imposes significant obligations on disqualified individuals like Damien. For instance, section 126K of the SISA prohibits a disqualified person from acting as a trustee, investment manager, or custodian of a superannuation entity, or being a responsible officer of a body corporate that holds such roles. Violating this prohibition is an offence under the Act, carrying a maximum penalty of two years in jail. Additionally, subsection 126A(5) of the SISA allows the Commissioner to revoke the disqualification either on their own initiative or in response to a written application from the disqualified person. For those dissatisfied with the decision, section 344 of the SISA provides a recourse where the Commissioner can be asked to reconsider the decision in writing within 21 days of receiving the notice of disqualification, outlining the reasons for the dissatisfaction.