Notice of Disqualification – David Markus - 30 May 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, ensuring that trustees and other responsible officers act in the best interests of superannuation fund members. The legislation aims to protect the superannuation savings of Australians by establishing standards of conduct and compliance for trustees and other related officers, addressing issues such as financial mismanagement, conflicts of interest, and breaches of statutory obligations. The SISA is administered by the Australian Taxation Office, with the Commissioner of Taxation having the authority to disqualify individuals who are deemed unfit to manage superannuation funds. The policy objective of the Act is to maintain the integrity and stability of the superannuation system, thereby safeguarding the retirement savings of millions of Australians.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the superannuation industry, specifically targeting trustees, investment managers, and custodians of superannuation entities. This legislation is of Commonwealth jurisdiction and thus extends across the entire nation, governing the conduct and transactions of those within its purview. The Act includes specific provisions for disqualifying individuals who fail to meet the required standards of fitness and propriety, as evidenced by the notice of disqualification to David Markus. This notice, issued by a delegate of the Commissioner of Taxation, serves to bar Markus from acting as a trustee or responsible officer of a superannuation entity due to breaches of the SISA and his unsuitability for such roles. The disqualification is immediate upon issuance and will be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and public record of such actions. Additionally, the Act stipulates severe penalties, including potential imprisonment, for any disqualified person who continues to engage in prohibited activities. The Commissioner retains the authority to revoke the disqualification under certain conditions, and affected parties have the right to request a reconsideration of the decision within 21 days of receiving notice.

Key Provisions

The key provisions of the Superannuation Industry (Supervision) Act 1993 (SISA) as outlined in the notice include subsections 126A(2), 126A(3), 126A(6), and 126A(7). Section 126A(2) and 126A(3) permit the disqualification of an individual who is a responsible officer of a corporate trustee of a superannuation entity if the corporate trustee has contravened the SISA on multiple occasions. Section 126A(6) requires that a notice of disqualification must be given to the disqualified person, as exemplified in this case by the notice to David Markus. Section 126A(7) mandates that the details of this disqualification notice be published as a Notifiable Instrument in the Federal Register of Legislation. The obligations imposed on David Markus by the Act include refraining from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a corporate trustee, after being formally disqualified. This disqualification is due to the corporate trustee's contraventions of the SISA, which David Markus was responsible for at the time of the breaches. Additionally, David Markus is obligated to ensure that he does not engage in activities that would make him unfit to be a trustee or responsible officer in the future, as determined by the Commissioner of Taxation. The SISA imposes significant penalties for breaches of the disqualification order. Section 126K of the Act states that it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of such entities. The maximum penalty for this offence is two years imprisonment. Furthermore, the Act provides for the revocation of disqualification, either on the initiative of the Commissioner or upon a written application by the disqualified person, as per subsection 126A(5). If David Markus wishes to have his disqualification reconsidered, he must make a written request to the Commissioner within 21 days of receiving the notice, as stipulated in section 344 of the SISA.