Notice of Disqualification - Lozana Perez - 19 May 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address significant regulatory gaps within Australia's superannuation industry, ensuring that superannuation funds are managed in a manner that protects the interests of members and beneficiaries. This Act was introduced by the Australian Parliament with the objective of establishing a robust regulatory framework to oversee and supervise the administration of superannuation funds. The legislation empowers the Commissioner of Taxation to enforce compliance and impose penalties for non-compliance, including disqualification of individuals from managing superannuation entities if they are found to have contravened the Act in a manner that is serious enough to warrant such action. This notice of disqualification serves to inform Lozana Perez that she has been disqualified from acting in certain capacities related to superannuation entities due to breaches of the Act, with the disqualification taking immediate effect. The notice also outlines the potential for disqualification to be revoked under certain conditions and provides information on the right to request reconsideration of the decision within a specified timeframe.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to a broad range of entities and individuals within the superannuation industry, including trustees, investment managers, custodians, and responsible officers of superannuation entities. The Act imposes obligations and standards on these entities and individuals to ensure the proper management and supervision of superannuation funds. The geographic reach of the Act is national, applying across Australia and regulated by the Commonwealth. The Act's provisions are enforced by the Commissioner of Taxation, who has the authority to disqualify individuals who have contravened the Act, as evidenced by the notice given to Lozana Perez. The disqualification prohibits the named individual from acting in any capacity that involves the management of superannuation funds, with serious penalties for non-compliance. The Act also allows for the revocation of disqualification under certain conditions and provides a mechanism for reconsideration of decisions by the Commissioner.

Key Provisions

Section 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA) requires the Commissioner of Taxation to give notice to a person when they are disqualified from being involved in superannuation entities. In this case, Lozana Perez has been given such a notice by Emma Rosenzweig, a delegate of the Commissioner of Taxation, indicating that Perez has been disqualified under subsection 126A(1) due to contraventions of the SISA. The disqualification becomes effective on the day the notice is issued. The Act imposes specific obligations on disqualified individuals like Perez. Under section 126K of the SISA, it is an offence for a disqualified person who is aware of their disqualification to act as a trustee, investment manager, custodian, or responsible officer of a superannuation entity. This prohibition extends to any body corporate that would be a trustee, investment manager, or custodian of such an entity if the disqualified person is involved. The seriousness of this obligation cannot be overstated, as it directly affects the governance and management of superannuation entities. Breaching these obligations can have severe consequences. Section 126K stipulates that knowingly acting in a prohibited capacity as a disqualified person is an offence, carrying a maximum penalty of two years imprisonment. This legal deterrent underscores the importance of compliance with the Act’s provisions. Additionally, the disqualification itself can be revoked either on the initiative of the Commissioner or upon a written application by the disqualified person, as outlined in subsection 126A(5). If Perez wishes to seek reconsideration of the decision, she must submit a written request to the Commissioner within 21 days of receiving the notice, as stipulated by section 344 of the SISA. This request must include reasons why the decision is believed to be incorrect.