Notice of Disqualification - Nalinda Kumarapperuma - 30 September 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to address the need for a regulatory framework to ensure the proper management and supervision of superannuation entities. This legislation was introduced by the Australian Parliament to safeguard the interests of superannuation fund members by setting out the responsibilities of trustees, investment managers, and custodians. The policy objective of the Act is to maintain the integrity and stability of the superannuation industry by ensuring compliance with the legal and regulatory requirements governing these entities. This includes the disqualification of individuals who are found to have breached the provisions of the Act, thereby preventing them from participating in the management of superannuation entities. The Act provides the Commissioner of Taxation with the authority to disqualify individuals who have contravened the Act, either directly or through their role as a responsible officer of a corporate trustee. This disqualification mechanism serves as a deterrent and a means of enforcing compliance within the superannuation industry. The disqualification of Nalinda Kumarapperuma, as detailed in the notice, is an example of this enforcement action, taken to uphold the standards and protect the interests of superannuation fund members. The notice also outlines the potential criminal penalties for a disqualified person who continues to act in a prohibited capacity, reinforcing the seriousness with which the Act regards such breaches.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the management and oversight of superannuation entities, including trustees, responsible officers, and corporate trustees. The Act's jurisdiction is Commonwealth-wide, regulating the superannuation industry across Australia. The Act's provisions include disqualifying individuals who contravene its provisions, such as by acting as a trustee or responsible officer of a superannuation entity while disqualified. The disqualification is effective immediately upon notice and is subject to potential revocation under certain conditions. Additionally, there are penalties for disqualified persons who continue to act in prohibited roles, with a maximum penalty of two years imprisonment. Any disqualified person may seek reconsideration of the decision within 21 days of receiving notice, as per section 344 of the Act. Note that this disqualification notice will be published as a Notifiable Instrument in the Federal Register of Legislation under subsection 126A(7).

Key Provisions

The primary operative sections in this notice of disqualification are subsections 126A(2) and 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA). Under subsection 126A(2), the delegate of the Commissioner of Taxation has disqualified Nalinda Kumarapperuma due to a conviction that they contravened the SISA on one or more occasions, which provides grounds for disqualification. The notice of this disqualification, as required by subsection 126A(6), is served to Nalinda, stating that the disqualification takes immediate effect. Additionally, under section 126K of the SISA, it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a body corporate that is a trustee, investment manager, or custodian. The Act imposes several obligations and requirements on Nalinda Kumarapperuma as a result of the disqualification. Firstly, Nalinda is prohibited from acting in any capacity as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of such a body corporate. This prohibition is intended to ensure that individuals who have contravened the SISA do not continue to manage or influence superannuation funds. Furthermore, the notice of disqualification is to be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and public record of the disqualification. Any breach of the disqualification provisions under section 126K of the SISA is an offence. Nalinda, knowing that she is disqualified, is not permitted to be, or act as, a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a body corporate that is a trustee, investment manager, or custodian. The maximum penalty for committing this offence is a two-year jail term. Additionally, under subsection 126A(5) of the SISA, the disqualification may be revoked on the initiative of the delegate or upon a written application by Nalinda. If Nalinda is affected by this decision and not satisfied with it, she can request the Commissioner to reconsider the decision within 21 days of receiving the notice, providing reasons why the decision is believed to be incorrect.