Notice of Disqualification – Monika Bakijovski

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Parliament of Australia to address the need for stringent regulation of the superannuation industry. The Act was introduced to ensure the integrity, efficiency, and effectiveness of superannuation funds, providing a regulatory framework to protect members' interests and maintain public confidence in the superannuation system. One of its key objectives is to prevent individuals who have demonstrated unfitness from participating in the management of superannuation entities. The Act empowers the Commissioner of Taxation to disqualify individuals from performing certain roles within the superannuation industry if they have contravened the Act’s provisions in a manner deemed serious enough to warrant such action. This legislative measure aims to uphold high standards of conduct and accountability within the industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) provides a framework for the oversight and regulation of the superannuation industry in Australia. This legislation applies to individuals and entities involved in the management and administration of superannuation funds, including trustees, investment managers, custodians, and responsible officers. The scope of the Act is national, extending its regulatory authority across the Commonwealth of Australia. A notable feature of the Act is its power to disqualify individuals who have contravened its provisions, as evidenced in the case of Monika Bakijovski. The disqualification extends to prohibiting such individuals from acting in roles such as trustee, investment manager, or custodian of a superannuation entity, or being a responsible officer of a body corporate fulfilling these roles. Contravening these restrictions is a serious offence, potentially resulting in a maximum penalty of two years imprisonment. The Act allows for the disqualification to be revoked under certain conditions and provides recourse for those affected to seek reconsideration of the decision within 21 days of receiving notice of the disqualification. Additionally, details of such disqualifications are published as Notifiable Instruments in the Federal Register of Legislation, ensuring transparency and accountability within the superannuation industry.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes provisions for disqualifying individuals from involvement in superannuation entities if they have contravened the Act. In this case, Monika Bakijovski has been disqualified under subsection 126A(1) of the SISA by Emma Rosenzweig, a delegate of the Commissioner of Taxation. This disqualification arises from Monika's contravention of the SISA on one or more occasions, which the delegate has determined to be serious enough to warrant this action. The disqualification takes immediate effect from the date of the notice, which was issued on 23 February 2024. Under the SISA, Monika is now legally barred from acting in various capacities within superannuation entities. Specifically, if Monika knowingly acts as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer or a body corporate performing these roles, she commits an offence under section 126K of the SISA. This offence is considered serious enough to attract a maximum penalty of two years imprisonment. Additionally, the disqualification notice informs Monika that this decision will be published as a Notifiable Instrument in the Federal Register of Legislation, making it publicly available. The notice also provides Monika with options to potentially have her disqualification revoked. Under subsection 126A(5) of the SISA, the Commissioner may revoke the disqualification either on their own initiative or in response to a written application from Monika. Furthermore, if Monika is dissatisfied with the disqualification decision, she has the right to request the Commissioner to reconsider it under section 344 of the SISA. This request must be made in writing within 21 days of receiving the notice and must clearly state the reasons why the decision is believed to be incorrect. This process ensures that Monika has an opportunity to challenge the decision and seek its reconsideration if she believes it to be unjust.