Notice of Disqualification – Daphne Ravey - 6 May 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted by the Commonwealth Parliament to regulate the superannuation industry in Australia, addressing the need for effective oversight and management to protect the interests of superannuation fund members. The Act was introduced to ensure that superannuation funds are managed responsibly and that trustees, investment managers and other key personnel adhere to stringent standards. The Superannuation Industry (Supervision) Act 1993 aims to maintain the integrity and stability of the superannuation system by preventing misconduct and ensuring compliance with legislative requirements. This notice of disqualification under the Act underscores the seriousness with which the Australian government treats breaches of superannuation regulations, aiming to deter non-compliance and safeguard the financial well-being of superannuation fund members.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to any individual or entity that is involved in the supervision or management of superannuation entities in Australia, which include trustees, investment managers, custodians, and responsible officers of self-managed superannuation funds (SMSFs). The Act operates on a Commonwealth level and its jurisdictional reach encompasses the entire nation, ensuring that all entities managing superannuation funds adhere to the prescribed standards and regulations. The Act explicitly excludes those who do not engage in the specified roles within the superannuation industry, although the definition of 'superannuation entity' and 'superannuation fund' is broad enough to cover a wide range of financial activities. The application of the SISA can be extended or restricted through subordinate instruments, such as regulations or guidelines, which provide further detail on specific provisions and their implementation. Notably, the Act includes stringent penalties for disqualified persons who continue to act in restricted capacities, with the potential for a two-year jail term as specified in section 126K.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains provisions for disqualifying individuals from participating in the superannuation industry. Section 126A of the SISA allows for the disqualification of individuals found to have contravened the Act, particularly when the seriousness of the contraventions warrants such action. Subsection 126A(1) of the Act provides the authority for the disqualification, which takes effect on the day the notice is issued, as seen in the notice provided to Daphne Ravey on 6 May 2025. This disqualification is communicated formally by a delegate of the Commissioner of Taxation, who, in this instance, is Emma Rosenzweig. The obligations imposed by the SISA on entities and individuals within the superannuation industry are substantial. Trustees, investment managers, custodians, responsible officers, and body corporates are required to adhere strictly to the Act’s provisions, ensuring compliance in all aspects of superannuation management. The Act mandates that disqualified individuals must not act in any capacity related to a superannuation entity, as outlined in section 126K. This includes acting as a trustee, investment manager, custodian, or any responsible officer of a superannuation entity, as well as any body corporate fulfilling these roles. Failure to comply with the disqualification provisions outlined in the SISA can result in severe consequences. Under section 126K, it is an offence for a disqualified person to act in any capacity related to a superannuation entity if they are aware of their disqualification. The maximum penalty for this offence is two years in jail. This stringent penalty underscores the seriousness with which the Act treats breaches of disqualification orders. Additionally, the SISA provides mechanisms for potential revocation of disqualification. Subsection 126A(5) allows for the revocation of a disqualification either on the initiative of the Commissioner or upon a written application by the disqualified person. This provides a pathway for individuals to seek reinstatement, subject to the terms and conditions set by the Commissioner. Furthermore, section 344 of the SISA offers recourse for those dissatisfied with the disqualification decision, allowing them to request a reconsideration by the Commissioner within 21 days of receiving the notice. This request must be made in writing and must specify the reasons why the decision is believed to be incorrect.