Notice of Disqualification – Maree Carlone - 30 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide a robust regulatory framework for the supervision of the superannuation industry in Australia. It addresses the need for stringent oversight to protect the interests of superannuation fund members, ensuring that trustees, investment managers, and custodians adhere to high standards of governance and accountability. The SISA was introduced by the Commonwealth Parliament, reflecting a policy objective to safeguard the financial well-being of superannuation fund members by establishing clear regulatory standards and enforcement mechanisms. The Act empowers the Commissioner of Taxation to disqualify individuals who have acted in a manner that breaches the Act’s provisions while serving as responsible officers of corporate trustees. This disqualification is intended to deter misconduct and maintain the integrity of the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to responsible officers of corporate trustees managing superannuation entities, ensuring compliance with the regulations governing superannuation funds. The Act's jurisdiction is federal, meaning it extends across Australia and applies uniformly regardless of state or territory boundaries. The Act targets individuals who hold positions of responsibility within corporate trustees and those who manage or oversee superannuation funds, ensuring that they adhere to the stipulated standards and regulations. The notice of disqualification issued to Maree Carlone exemplifies the Act's enforcement mechanisms, aimed at maintaining the integrity of the superannuation industry by barring individuals from certain roles if they have contravened the Act’s provisions. The Act also provides for the publication of such disqualifications as Notifiable Instruments, ensuring transparency and accountability within the industry. While the Act broadly applies to relevant officers and entities, it does not specify particular exclusions or exemptions; however, it does allow for the possibility of revocation of disqualifications under certain conditions.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes provisions for the disqualification of individuals who are responsible officers of corporate trustees of superannuation entities if certain conditions are met. Section 126A(1) provides the basis for disqualifying such individuals when there is evidence that the corporate trustee has contravened the SISA and the seriousness of the contravention warrants disqualification. Subsection 126A(6) mandates that a notice of disqualification must be given to the person affected, which was executed in this case by Emma Rosenzweig, a delegate of the Commissioner of Taxation, as evidenced in the notice sent to Maree Carlone. The disqualification becomes effective on the day the notice is issued, as stated in the notice dated 30 July 2025. The Act imposes significant obligations on the parties it governs. For instance, responsible officers of corporate trustees must ensure compliance with all provisions of the SISA. If there are any breaches, and the officer was aware of them at the time, this can lead to their disqualification under section 126A. Furthermore, 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 a body corporate that acts in these capacities. The Act also mandates that details of such disqualifications be published as Notifiable Instruments in the Federal Register of Legislation, as per subsection 126A(7). In terms of consequences for breach, section 126K stipulates that knowingly being or acting as a trustee, investment manager, or custodian after being disqualified is an offence. The penalty for this offence is severe, with a maximum of two years imprisonment. Additionally, the Commissioner of Taxation has the authority to revoke a disqualification under subsection 126A(5), either on their own initiative or upon a written application by the disqualified person. For those dissatisfied with the disqualification decision, section 344 provides an avenue for reconsideration, requiring a written request to the Commissioner within 21 days of receiving the notice, detailing the reasons for dissatisfaction.