Notice of Disqualification - Lisa Strembickyj - 11 March 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to address the need for stringent regulation and oversight of the superannuation industry in Australia, ensuring the protection of superannuation fund members and the integrity of the superannuation system. The Act was introduced by the Australian Parliament to establish a regulatory framework that mandates the operation of superannuation funds and the conduct of trustees and responsible officers, aiming to uphold the financial stability and accountability of the industry. The policy objective of the Act is to safeguard the superannuation savings of Australians by imposing obligations on trustees and responsible officers to ensure proper management and reporting of superannuation funds, and by providing mechanisms for the enforcement of compliance and penalties for non-compliance. Under this Act, the Commissioner of Taxation has the authority to disqualify individuals from acting as responsible officers of superannuation entities if there are significant breaches of the Act. Such disqualifications are intended to prevent those who have demonstrated a disregard for the statutory requirements from participating in the management of superannuation funds, thereby protecting the interests of fund members. The Act provides for the publication of disqualification notices, such as the one issued to Lisa Strembickyj on 11 March 2025, ensuring transparency and accountability within the industry. The Act also imposes criminal penalties for disqualified persons who continue to act in prohibited roles, reinforcing the seriousness of compliance with superannuation laws.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation entities in Australia. Specifically, the Act targets responsible officers, trustees, investment managers, and custodians of superannuation entities, ensuring compliance with the legislative standards and protecting the interests of superannuation fund members. The geographic reach of the Act is national, applying across all states and territories of Australia, thus providing a unified framework for the supervision of superannuation funds. The Act excludes certain entities and conduct from its purview, but it can be extended or restricted through subordinate instruments, which may include regulations and guidelines issued by the Commissioner of Taxation or other authorised officers. The Act provides for the disqualification of individuals found to be responsible officers of corporate trustees who have contravened its provisions, as evidenced in the case of Lisa Strembickyj, who has been disqualified under subsection 126A(2) of the SISA. The disqualification serves as a significant deterrent, with serious penalties, including up to two years in jail, for any disqualified person who continues to act in a capacity regulated by the Act.

Key Provisions

The primary operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to this disqualification notice are subsections 126A(2) and 126A(6). Under subsection 126A(2), the Commissioner of Taxation is empowered to disqualify a person from performing certain roles related to superannuation entities if they are satisfied that the corporate trustee has contravened the SISA and that the individual was a responsible officer at the time. Subsection 126A(6) requires the Commissioner to provide a written notice of this disqualification to the affected person, which is what has been done here. The notice informs Lisa Strembickyj that she has been disqualified from acting as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a body corporate that performs these roles. The Act imposes several obligations on the parties it governs. Firstly, it mandates that responsible officers of corporate trustees must ensure compliance with all provisions of the SISA. This includes adherence to the regulatory standards and ethical guidelines designed to protect superannuation funds and beneficiaries. Secondly, the Act requires that any contraventions of the SISA be reported and rectified promptly. Failure to meet these obligations can lead to disqualification under subsection 126A(2) of the SISA. The SISA also establishes serious 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 as a responsible officer of a body corporate that performs these roles, if they are aware of their disqualification. The maximum penalty for this offence is two years imprisonment. Additionally, the Act allows for the disqualification to be revoked either on the initiative of the Commissioner or upon a written application by the disqualified person, as outlined in subsection 126A(5). Furthermore, if Lisa Strembickyj is dissatisfied with the disqualification decision, she can request the Commissioner to reconsider it in writing within 21 days of receiving the notice, as provided under section 344 of the SISA.