Notice of Disqualification – David Fredericks - 19 March 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Parliament of Australia to provide a regulatory framework aimed at ensuring the integrity, efficiency, and transparency of the superannuation industry. The legislation was introduced to address significant gaps in the oversight and management of superannuation entities, ensuring that trustees, investment managers, and custodians operate within prescribed standards to protect the interests of superannuation beneficiaries. The policy objective of the Act is to maintain confidence in the superannuation system by enforcing strict compliance and governance standards. This is achieved through measures that include the ability to disqualify individuals from responsible positions within superannuation entities if they are found to have contravened the Act, thereby safeguarding the financial well-being of superannuation fund members.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration of superannuation funds within Australia, specifically targeting trustees, responsible officers, investment managers, and custodians of superannuation entities. This Act operates at the Commonwealth level, ensuring that the management and oversight of superannuation funds adhere to the statutory standards set forth by the legislation. The Act's jurisdiction encompasses all superannuation entities operating within Australia, irrespective of state or territory boundaries. The notice of disqualification serves as a clear warning and enforcement mechanism for those who fail to comply with the Act's requirements, particularly in cases where a corporate trustee has contravened the SISA on multiple occasions. Exclusions or exemptions from the Act are minimal, and its application extends through subordinate instruments, such as regulations and guidelines, which provide further clarity and operational detail. Notably, once disqualified, an individual cannot act as a trustee, investment manager, or custodian of a superannuation entity, and doing so knowingly constitutes an offence with severe penalties, including up to two years in jail. The disqualification can be appealed or revoked under specific conditions outlined in the Act.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) referenced in this notice pertain to the disqualification of individuals who have been found to be responsible officers of a corporate trustee of one or more superannuation entities that have contravened the Act. Specifically, subsection 126A(2) of the SISA allows for the disqualification of such individuals when the contraventions are both numerous and serious. Section 126A(6) requires that a formal notice of this disqualification be issued to the individual concerned, in this case, David Fredericks. The notice informs David that he has been disqualified under subsection 126A(2) of the SISA, and this disqualification takes effect immediately upon issuance of the notice. The obligations and requirements imposed by the SISA on parties and entities it governs are extensive and aim to ensure the proper administration and oversight of superannuation entities. As a responsible officer of a corporate trustee, David Fredericks was required to ensure compliance with the SISA, which includes adherence to the regulatory standards set for the management and operation of superannuation funds. His responsibilities would have included overseeing the trustee's activities and ensuring that the superannuation entities under the trustee's control operate within the legal framework established by the SISA. Failure to meet these obligations, as evidenced by the contraventions that led to his disqualification, results in the consequences outlined in the Act. The SISA also delineates specific offences and penalties for breaches, particularly those related to disqualification. According to section 126K of the SISA, it is an offence for a disqualified person, who is aware of their disqualification, to continue acting in any capacity, such as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer of a corporate trustee. The maximum penalty for committing this offence, as stated in the notice, is two years imprisonment. This serves as a deterrent to those who might otherwise attempt to circumvent the disqualification and continue to influence or control superannuation entities in violation of the Act. In addition to criminal penalties, the SISA provides avenues for review and reconsideration of disqualification decisions. Section 344 of the SISA allows an affected individual to request the Commissioner to reconsider the decision if they are dissatisfied with it. This request must be made in writing within 21 days of receiving the notice of disqualification and should include the reasons for the dissatisfaction. Furthermore, the SISA provides for the possibility of revocation of the disqualification under subsection 126A(5), either on the initiative of the Commissioner or upon a written application by the disqualified individual. This offers a potential path for reinstatement, subject to the satisfaction of any conditions the Commissioner may impose.