Notice of Disqualification – Kylie Di Geronimo – 7 March 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for effective regulation of the superannuation industry in Australia, ensuring the protection of superannuation funds and the rights of fund members. The Act provides a legislative framework to oversee the operations of superannuation entities, including trustees, investment managers, and custodians, with the overarching policy objective of safeguarding the interests of superannuation fund members. The SISA establishes various compliance and disclosure requirements, and it empowers the Commissioner of Taxation to disqualify individuals who are responsible officers of corporate trustees and have engaged in serious contraventions of the Act. This legislative measure aims to maintain the integrity of the superannuation system and to deter misconduct within the industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and corporate entities involved in the administration of superannuation entities in Australia, including trustees, investment managers, custodians, and responsible officers of these entities. The Act's jurisdiction covers the entire Commonwealth of Australia, establishing a national regulatory framework for the supervision of superannuation funds. Specifically, the Act targets conduct and transactions related to the management and governance of superannuation entities, ensuring compliance with legislative standards to protect the interests of superannuation fund members. The Act's application extends to the disqualification of responsible officers who are found to have contravened the SISA, as evidenced by the notice of disqualification issued to Kylie Di Geronimo. This disqualification takes immediate effect and prohibits the disqualified individual from acting in certain capacities within the superannuation industry. Additionally, the Act includes provisions for the potential revocation of disqualification notices and offers avenues for reconsideration of the decisions by affected parties. The legislative framework is further supported by subordinate instruments that may extend or restrict its application, ensuring a comprehensive and enforceable regulatory environment.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to this notice include subsections 126A(2) and 126A(6), which provide the authority to disqualify a responsible officer of a corporate trustee if certain conditions are met. Specifically, subsection 126A(2) allows for disqualification if the corporate trustee has contravened the SISA and the officer was a responsible officer at the time of the contraventions. The notice of disqualification, which is required under subsection 126A(6), informs the individual, in this case Kylie Di Geronimo, that they have been disqualified by a delegate of the Commissioner of Taxation, Emma Rosenzweig, because of the contraventions and the seriousness of these contraventions. The Act imposes several obligations and requirements on the parties it governs. A responsible officer must ensure compliance with the SISA to avoid disqualification. This includes being aware of and adhering to all relevant regulations and standards governing the management and operation of superannuation entities. The Act mandates that any contraventions of the SISA by the corporate trustee must be addressed promptly to avoid repercussions for the responsible officer. The notice also highlights the requirement for responsible officers to refrain from acting as trustees, investment managers, or custodians of a superannuation entity if they know they are disqualified. The SISA imposes significant consequences for breaches of its provisions. Under section 126K, it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer of such a body. The maximum penalty for this offence is two years in jail, underscoring the seriousness with which the Act treats such violations. Additionally, subsection 126A(5) allows for the revocation of the disqualification, which can occur either on the initiative of the Commissioner or upon the written application of the disqualified person. This provides a mechanism for potentially reversing the disqualification if certain conditions are met. Finally, section 344 of the SISA offers recourse for individuals affected by the disqualification decision. If Kylie Di Geronimo, or any other affected party, is dissatisfied with the decision, she can request the Commissioner to reconsider it. This request must be made in writing within 21 days of receiving the notice of disqualification and should include the reasons why she believes the decision is wrong. This provision ensures that there is a formal process for challenging the disqualification, providing a degree of fairness and accountability within the regulatory framework.