Notice of Disqualification – Mehmet Akmandor - 3 September 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for robust regulation and oversight of superannuation entities to protect the interests of superannuation fund members. The Act was introduced by the Parliament of Australia to ensure that trustees and responsible officers of superannuation entities adhere to high standards of conduct and compliance. The policy objective of the SISA is to maintain and enhance confidence in the superannuation system by ensuring that trustees and responsible officers are fit and proper persons. The Act provides mechanisms for disqualifying individuals who are not suitable to manage superannuation funds, thereby safeguarding the financial well-being of superannuation members. This legislative framework is critical in maintaining the integrity of the superannuation system and ensuring that trustees and responsible officers act in the best interests of fund members.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the superannuation industry in Australia, including trustees, responsible officers, and corporate trustees of superannuation entities. The Act has national jurisdiction as it is Commonwealth legislation. The Act's provisions can extend or restrict its application through subordinate instruments, which may provide further clarification or detail on specific aspects of the legislation. In the case of Mehmet Akmandor, the Act was applied to disqualify him due to contraventions of the Act by the corporate trustee of one or more superannuation entities, for which he was a responsible officer at the time. The disqualification notice provided under the Act also includes a requirement for the details of the disqualification to be published as a Notifiable Instrument in the Federal Register of Legislation. Additionally, the Act stipulates that it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, with a maximum penalty of two years in jail. The Act also allows for the revocation of a disqualification and provides a process for reconsideration of a decision by the Commissioner.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) provides specific provisions for the disqualification of individuals who are deemed unfit to hold certain positions within superannuation entities. Section 126A of the SISA allows for the disqualification of individuals based on certain conditions. Subsection 126A(2) permits disqualification if the corporate trustee has contravened the SISA and the individual was a responsible officer at the time. Subsection 126A(3) provides grounds for disqualification if the individual is not considered a fit and proper person to be a trustee or responsible officer. In the case of Mehmet Akmandor, he has been disqualified under these provisions due to his role in the contraventions and his unsuitability for the position. The Act imposes several obligations and requirements on the parties and entities it governs. For instance, responsible officers of corporate trustees must ensure compliance with the SISA to avoid disqualification. Additionally, the Act mandates that the Commissioner of Taxation, or a delegate, must provide written notice of disqualification to the affected individual. Furthermore, the disqualification is effective immediately upon issuance, as stated in the notice given to Mehmet Akmandor. Moreover, the Act requires that details of such disqualifications be published in the Federal Register of Legislation to ensure transparency and public awareness. Violations of the SISA’s disqualification provisions can lead to significant penalties. Section 126K of the Act makes it an offence for a disqualified person to act as a trustee, investment manager, custodian, or responsible officer of a superannuation entity. This offence carries a maximum penalty of two years imprisonment, highlighting the seriousness with which the Act treats breaches of disqualification. Furthermore, the Act allows for the revocation of disqualification either on the initiative of the Commissioner or upon a written application by the disqualified individual, as outlined in subsection 126A(5). For those who disagree with the decision, section 344 provides a mechanism for reconsideration, requiring a written request within 21 days of receiving notice of the decision.