Notice Of Disqualification – Irene Novak - 8 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide a regulatory framework for the superannuation industry, ensuring that superannuation funds are managed responsibly and in the best interests of members. This Act was introduced to address the need for robust oversight and regulation of the superannuation sector, which had grown significantly, necessitating legislative intervention to protect the interests of fund members and maintain public confidence in the system. The policy objective behind the Act is to ensure that trustees, investment managers, and other key personnel within the superannuation industry adhere to high standards of conduct and compliance, thereby safeguarding the financial welfare of superannuation fund members. The Act is administered by the Commissioner of Taxation, who has the authority to disqualify individuals from participating in the management of superannuation entities if they are found to have contravened the provisions of the Act. The Commissioner’s powers include issuing disqualification notices and publishing details of such decisions to ensure transparency and accountability within the industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the administration and management of superannuation funds in Australia. Specifically, the Act targets trustees, investment managers, custodians, and responsible officers of superannuation entities, ensuring they adhere to prescribed standards of conduct and fiduciary duty. The geographic reach of this Act is national, extending across all states and territories of Australia. The Act provides the Commissioner of Taxation with the authority to disqualify individuals from participating in the superannuation industry if they have contravened the Act’s provisions. This disqualification includes a prohibition on acting as a trustee, investment manager, or custodian of a superannuation entity, or serving as a responsible officer of such entities. Notably, the Act also mandates the publication of details regarding such disqualifications in the Federal Register of Legislation. There are no specific exclusions or exemptions outlined within the Act itself, but the application and interpretation of its provisions may be further detailed in subordinate instruments.

Key Provisions

The key provision of this notice, pursuant to subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA), is the disqualification of Irene Novak by Emma Rosenzweig, a delegate of the Commissioner of Taxation. The disqualification is issued as Rosenzweig is satisfied that Novak has contravened the SISA on one or more occasions to an extent that provides grounds for disqualification (subsection 126A(1)). The disqualification is effective from the day it is issued (subsection 126A(6)). Additionally, subsection 126A(7) mandates the publication of the details of this disqualification as a Notifiable Instrument in the Federal Register of Legislation. In terms of obligations, the SISA imposes several responsibilities on individuals like Novak who have been disqualified. Specifically, 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 or a body corporate that is a trustee, investment manager, or custodian of a superannuation entity if they know they are disqualified. Failure to adhere to this prohibition constitutes an offence under the Act. The penalties for breaches of the SISA in this context are significant. Section 126K stipulates that any disqualified person who knowingly engages in prohibited activities can be subjected to criminal penalties, including up to two years imprisonment. Furthermore, subsection 126A(5) of the SISA allows for the revocation of a disqualification either on the initiative of the Commissioner of Taxation or upon a written application by the disqualified person. Lastly, section 344 provides a recourse for those dissatisfied with the disqualification decision, allowing them to request the Commissioner to reconsider the decision within 21 days of receiving notice, provided the request is made in writing and outlines the reasons for dissatisfaction.