Notice of Disqualification – Mark Andrich - 6 March 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Australian Parliament to address the need for effective regulation and supervision of the superannuation industry. The legislation aims to ensure the integrity, efficiency, and stability of the superannuation system by imposing various obligations on entities within the industry, including trustees, investment managers, and custodians. One of the key provisions of the SISA is the ability to disqualify individuals who are responsible officers of corporate trustees found to have contravened the Act, as a means to maintain high standards of conduct within the industry. The SISA provides the Commissioner of Taxation with the authority to disqualify individuals who have been implicated in significant breaches of the Act, thereby protecting the interests of superannuation fund members and maintaining public confidence in the system. The policy objective of the SISA is to safeguard the superannuation savings of Australians by promoting responsible and ethical management of superannuation funds.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and corporate entities involved in the administration of superannuation entities, including trustees, investment managers, custodians, and responsible officers. The scope of the Act extends to the conduct and transactions of these entities, aiming to ensure compliance with the regulatory framework governing superannuation in Australia. The jurisdictional reach of the SISA is national, as it is a Commonwealth Act, thereby applying uniformly across all states and territories in Australia. The Act includes provisions for disqualifying individuals from acting in certain capacities if they have been associated with entities that contravene the SISA. The disqualification is effective immediately upon issuance and includes a requirement for the details of such disqualifications to be published in the Federal Register of Legislation. Furthermore, the Act imposes strict penalties, including a potential two-year jail term, for disqualified individuals who continue to act in prohibited capacities. The Act also provides mechanisms for reconsideration of disqualification decisions and potential revocation of disqualification, either on the initiative of the authorities or upon written application by the disqualified person.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes various provisions for the disqualification of individuals who have contravened the Act while holding a responsible position within a superannuation entity. In this instance, subsection 126A(2) of the SISA allows for the disqualification of a person when they are a responsible officer of a corporate trustee that has contravened the Act, and the seriousness of the contraventions warrants such action. Subsection 126A(6) mandates that a notice of disqualification be given to the individual concerned, as is the case with Mark Andrich, who has been formally notified of his disqualification by Emma Rosenzweig, a delegate of the Commissioner of Taxation. This disqualification takes immediate effect as per the terms of the notice. The obligations imposed by the SISA on the parties and entities it governs include the requirement for responsible officers to adhere strictly to the provisions of the Act. In particular, they must ensure that the corporate trustee of the superannuation entity complies with all relevant regulations and standards. Subsection 126A(7) of the SISA mandates that details of any disqualification notice must be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and accountability. Furthermore, section 126K imposes a duty on disqualified persons to refrain from acting as trustees, investment managers, or custodians of superannuation entities, or being associated with any body corporate that fulfils such roles. Failure to comply with the provisions of the SISA, including the disqualification imposed by the Act, can result in significant legal consequences. As noted in Note 2, it is an offence under section 126K for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity. The maximum penalty for this offence is two years imprisonment, underscoring the seriousness with which the law regards breaches of these provisions. Additionally, subsection 126A(5) of the SISA provides for the possibility of revocation of the disqualification, either on the initiative of the Commissioner or upon written application by the disqualified person. For those affected by the disqualification decision, section 344 of the SISA offers a recourse mechanism. If Mark Andrich, or any other affected party, is dissatisfied with the decision, they can request the Commissioner to reconsider it. This request must be made in writing within 21 days of receiving notice of the decision and should outline the reasons for dissatisfaction. This process ensures that there is a formal avenue for appeal and review, thereby upholding the principles of fairness and due process within the legal framework.