Notice of Disqualification – Michelle Jacobs – 22 April 2024

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to address the need for effective oversight and regulation of the superannuation industry in Australia. This legislation was introduced by the Australian Parliament to ensure the protection of superannuation funds and the rights of superannuation fund members. The primary objective of the Act is to establish a robust supervisory framework that maintains the integrity and efficiency of the superannuation industry. One significant issue the Act aimed to resolve was the potential for misconduct and mismanagement within superannuation entities, which could jeopardise the financial security of members. The Act provides mechanisms for the disqualification of individuals who have contravened its provisions, ensuring that those who pose a risk to the industry are held accountable. The legislative framework also includes provisions for the publication of disqualification notices, as seen in the case of Michelle Jacobs, to maintain transparency and deter potential breaches.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and administration of superannuation funds in Australia, including trustees, investment managers, custodians, and responsible officers. This Act has a national reach, applying across the Commonwealth of Australia and impacting the conduct and transactions of entities within the superannuation industry. The Act includes provisions for disqualifying individuals from performing certain roles within superannuation entities if they are found to have contravened its provisions. In the case of Michelle Jacobs, she has been disqualified due to serious contraventions of the Act. The disqualification prohibits her from acting as a trustee, investment manager, or custodian of a superannuation entity, or from being a responsible officer of a body corporate that performs such roles. This disqualification is effective immediately upon notice. Additionally, under section 126K of the SISA, it is an offence for a disqualified person to continue to act in these capacities, with penalties including up to two years in jail. The disqualification may be subject to revocation by the Commissioner of Taxation, either on their own initiative or upon application by the disqualified person, as outlined in section 126A(5) of the SISA. Appeals against the disqualification decision can be made within 21 days of receiving the notice, as per section 344 of the Act.

Key Provisions

The primary operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) in this context are subsections 126A(1), 126A(6), and 126A(7). Subsection 126A(1) empowers the Commissioner of Taxation to disqualify an individual from acting in certain roles related to superannuation entities if there are reasonable grounds for doing so. Subsection 126A(6) requires the Commissioner, or a delegate such as Emma Rosenzweig, to notify the disqualified individual, Michelle Jacobs, in writing of the decision. Subsection 126A(7) mandates that these disqualification notices be published as a Notifiable Instrument in the Federal Register of Legislation. The notice to Michelle Jacobs, dated 22 April 2024, states that she has been disqualified from certain roles due to her contravention of the SISA on one or more occasions, and the severity of these contraventions justifies the disqualification. The SISA imposes specific obligations and requirements on individuals and entities it governs. Under section 126K, a disqualified person who is aware of their disqualification status is prohibited from being or acting as a trustee, investment manager, custodian, responsible officer, or a body corporate involved with a superannuation entity. This means that Michelle Jacobs, upon receiving the notice of her disqualification, is legally barred from engaging in any capacity that involves the management or administration of superannuation funds. The notice further clarifies that the disqualification is effective immediately from the date of the notice. In terms of offences, penalties, and consequences, the SISA sets out stringent measures for breaches. Section 126K specifies that it is an offence for a disqualified person to be or act in any of the prohibited roles. The maximum penalty for committing this offence is a two-year jail term, underscoring the seriousness of the contraventions that led to the disqualification. Furthermore, subsection 126A(5) provides that the disqualification can be revoked either by the Commissioner on their own initiative or upon a written application by the disqualified person, Michelle Jacobs. Additionally, section 344 of the SISA allows for the Commissioner to reconsider the decision if Michelle Jacobs, dissatisfied with the disqualification, makes a written request within 21 days of receiving the notice, providing reasons for why the decision should be reconsidered.