Notice of Disqualification – Kooramyee Cooper - 15 April 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to ensure the integrity and proper management of superannuation funds in Australia, addressing the need for robust oversight and accountability within the superannuation industry. The legislation was introduced by the Commonwealth Parliament to tackle issues arising from improper conduct by trustees and responsible officers, thus safeguarding the interests of superannuation fund members. This Act empowers the Commissioner of Taxation to disqualify individuals from acting in certain capacities within superannuation entities if they have contravened the provisions of the Act, as a means to maintain the integrity of the superannuation system. The policy objective of the SISA is to ensure that superannuation funds are managed responsibly and in the best interests of members, thereby promoting confidence in the superannuation industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management of superannuation entities in Australia. Specifically, it targets responsible officers of corporate trustees who are found to have contravened the provisions of the Act. This legislation operates on a Commonwealth level, thereby extending its reach across the entire nation. The Act provides for the disqualification of individuals who have been responsible officers at the time of such contraventions, particularly if the seriousness of the breach justifies such action. The disqualification not only prevents the individual from acting as a trustee, investment manager, or custodian of a superannuation entity but also extends to preventing them from being associated with any body corporate that assumes such roles. The geographic reach of this Act is national, and it is enforced through subordinate instruments and notices, such as the one issued to Kooramyee Cooper, which are published as Notifiable Instruments in the Federal Register of Legislation. Exempt from this disqualification are individuals who were not aware of their disqualification, though it remains an offence with significant penalties for those who knowingly contravene the Act.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) referenced in the document include subsection 126A(2) and subsection 126A(6). Subsection 126A(2) allows the Commissioner of Taxation to disqualify a person if they are satisfied that the corporate trustee of one or more superannuation entities has contravened the SISA and the seriousness of the contraventions provides grounds for disqualification. Subsection 126A(6) requires the delegate of the Commissioner to give the disqualified person notice of the disqualification. The document includes a disqualification notice under subsection 126A(7) of the SISA, which will be published as a Notifiable Instrument in the Federal Register of Legislation. The Act imposes obligations and requirements on the parties it governs, including responsible officers of corporate trustees of superannuation entities. They must ensure that the corporate trustee complies with the SISA and that any contraventions are not serious enough to warrant disqualification. The document also imposes an obligation on the disqualified person to not act as a trustee, investment manager, or custodian of a superannuation entity, or be responsible for a body corporate that is a trustee, investment manager, or custodian, if they know that they are disqualified. Breach of the obligations and requirements of the Act can result in civil and criminal consequences. Under section 126K of the SISA, it is an offence for a disqualified person who knows that they are disqualified to act as a trustee, investment manager, or custodian of a superannuation entity, or be responsible for a body corporate that is a trustee, investment manager, or custodian. The maximum penalty for committing this offence is two years imprisonment. Additionally, under subsection 126A(5) of the SISA, the disqualification may be revoked on the initiative of the Commissioner of Taxation or on the written application of the disqualified person. If a person is affected by the decision and is not satisfied with it, they can ask the Commissioner to reconsider the decision in writing within 21 days of receiving notice of the decision.