Notice of Disqualification – Elizabeth Hindmarsh-Bawden – 5 August 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted by the Parliament of Australia to address the need for effective supervision and regulation of the superannuation industry, ensuring the protection of superannuation funds and the interests of members. The Act aims to maintain high standards of conduct and competence among trustees and responsible officers of superannuation entities, thereby safeguarding the financial security of superannuation members. The notice of disqualification issued under this Act to Elizabeth Hindmarsh-Bawden serves as an example of the regulatory measures in place to enforce these standards. Emma Rosenzweig, a delegate of the Commissioner of Taxation, disqualified Elizabeth based on a determination that she was not a fit and proper person to hold her position, highlighting the Act’s objective to maintain integrity within the superannuation industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management of superannuation funds within Australia, specifically targeting trustees, investment managers, custodians, and responsible officers of superannuation entities. This Act has a national reach, governing the entire Commonwealth of Australia, and it encompasses a wide array of conduct and transactions relating to the administration of superannuation funds. The Act's application extends to ensuring that only fit and proper persons manage these funds, thereby safeguarding the interests of superannuation beneficiaries. While the Act is comprehensive, it does allow for certain exclusions and exemptions where explicitly stated. Additionally, the scope of the Act may be further defined or adjusted through subordinate instruments, enabling the regulations to adapt to evolving circumstances within the superannuation industry.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) involved here are sections 126A(3) and 126A(6), which permit the disqualification of a person who is not a fit and proper person to be a trustee or a responsible officer of a superannuation entity. In this case, subsection 126A(6) mandates that a notice of disqualification must be provided to the person concerned, as demonstrated in the notice sent to Elizabeth Hindmarsh-Bawden. The disqualification takes immediate effect upon the issuance of the notice, as stated in the document. The Act imposes obligations on individuals disqualified under its provisions. Specifically, section 126K of the SISA makes it an offence for a disqualified person who is aware of their disqualification to act as a trustee, investment manager, custodian of a superannuation entity, or a responsible officer of a body corporate that is a trustee, investment manager, or custodian of a superannuation entity. The Act also mandates that details of the disqualification must be published as a Notifiable Instrument in the Federal Register of Legislation, as outlined in subsection 126A(7). Failure to comply with the disqualification provisions can lead to significant legal consequences. Section 126K of the SISA specifies that knowingly acting in any of the prohibited capacities while disqualified is an offence, with a maximum penalty of two years imprisonment. Additionally, the Act 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 person. For those dissatisfied with the disqualification decision, section 344 of the SISA allows for a written request for reconsideration to be made within 21 days of receiving the notice, detailing the reasons for the perceived wrongfulness of the decision.