Notice of Disqualification - Patrick Reynolds - 25 June 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to ensure the proper management and supervision of superannuation entities, aiming to protect the interests of superannuation fund members. The Act was introduced to address the need for stringent oversight and regulation of superannuation trustees, investment managers, and custodians to maintain the integrity and stability of the superannuation system in Australia. Enacted by the Australian Parliament, the policy objective of the SISA is to safeguard the financial well-being of superannuation fund members by imposing obligations on trustees, investment managers, and custodians, and by providing mechanisms for enforcement and disqualification where necessary. The Act aims to deter misconduct and ensure accountability within the superannuation industry, thereby fostering confidence in the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to various responsible officers of corporate trustees, including individuals such as Patrick Reynolds, and to the entities they manage, which are involved in the administration of superannuation funds. This Act has a Commonwealth jurisdiction, meaning it applies across Australia and is overseen by the Commonwealth Government. The Act extends its reach to any person who is a responsible officer of a corporate trustee and who has been found to contravene the provisions of the Act, leading to potential disqualification from managing superannuation entities. The Act does not specify exclusions or exemptions, and its application is not restricted by thresholds, though the severity of the contraventions is a determining factor in the disqualification process. The Act also empowers the delegate of the Commissioner of Taxation to revoke a disqualification under certain conditions, and it mandates the publication of details of any disqualification as a Notifiable Instrument in the Federal Register of Legislation. Additionally, it imposes criminal penalties for disqualified individuals who continue to act in their former capacities, with a maximum penalty of two years imprisonment.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) provides specific provisions for the disqualification of individuals who have contravened the Act. Section 126A(2) of the SISA allows for the disqualification of a person who, as a responsible officer of a corporate trustee, was involved in the contravention of the Act. This disqualification can be imposed if the seriousness of the contravention provides grounds for such action. Under subsection 126A(6), a notice of disqualification must be given to the affected individual, as seen in the notice issued to Patrick Reynolds. The notice, dated 25 June 2026, was issued by Ben Kelly, a delegate of the Commissioner of Taxation, and it informs Patrick that he has been disqualified under the SISA due to the contraventions committed by the corporate trustee of one or more superannuation entities. The obligations and requirements imposed by the SISA on the parties it governs include ensuring compliance with the Act and maintaining proper conduct. Responsible officers of corporate trustees must adhere strictly to the provisions of the SISA to avoid any contraventions that could lead to disqualification. The Act mandates that any corporate trustee or responsible officer must act in the best interests of the superannuation entity's members and beneficiaries. The disqualification notice serves as a formal communication to the affected individual, indicating that they are no longer permitted to act in certain capacities within the superannuation industry due to their past actions. The SISA also outlines specific offences and penalties for breaches. According to section 126K of the Act, it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer of a corporate trustee. The maximum penalty for committing this offence is two years in jail. This stringent penalty underscores the seriousness with which the Act treats breaches of its provisions. Additionally, under subsection 126A(5), the disqualification can be revoked either by the authority on its own initiative or upon the written application of the disqualified person. This provides a pathway for the disqualified individual to seek reinstatement under certain conditions. Finally, section 344 of the SISA allows any person affected by the disqualification decision to request a reconsideration by the Commissioner. This request must be made in writing within 21 days of receiving the notice and should include the reasons for believing that the decision is incorrect. This provision ensures that there is a formal process for challenging the disqualification, thereby providing a measure of due process to those affected by the decision.