Notice of Disqualification – Paul Dines – 7 November 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted by the Commonwealth Parliament to address significant concerns about the integrity and stability of Australia's superannuation industry. This legislation was introduced to fill a critical gap in the regulation of superannuation funds, ensuring that they are managed responsibly and in the best interests of the members. The policy objective of the Act is to protect the superannuation savings of Australians by imposing obligations on trustees, investment managers, and custodians of superannuation entities and establishing mechanisms for their supervision and enforcement. One key aspect of the Act is the ability to disqualify individuals who have contravened its provisions, as evidenced by the notice to Paul Dines regarding his disqualification under the Act. Such measures are crucial for maintaining the trust and confidence of the public in the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation funds within Australia, including trustees, investment managers, custodians, and responsible officers of superannuation entities. The Act operates nationally, applying across all states and territories, ensuring uniform standards and oversight in the superannuation industry. The legislation extends its reach to any person or entity that engages in conduct or transactions involving superannuation funds. The notice of disqualification provided to Paul Dines under subsection 126A(6) of the SISA signifies that he has contravened the Act on multiple occasions, warranting his disqualification from acting in any capacity related to superannuation entities. The disqualification is immediate upon issuance and is subject to publication in the Federal Register of Legislation as a Notifiable Instrument. Additionally, the Act stipulates that it is an offence for a disqualified person to continue acting in any capacity related to superannuation entities, with the potential penalty of up to two years imprisonment. The disqualification may be revoked at the discretion of the Commissioner or upon application by the disqualified individual, and dissatisfied parties have the right to request reconsideration within 21 days of receiving the notice.

Key Provisions

The key operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) in this context are subsection 126A(6) (subsection 126A(2)) which outlines the process of disqualification, and section 126K which sets out the specific offences related to acting as a trustee, investment manager, or custodian of a superannuation entity while disqualified. Under subsection 126A(6), the Commissioner of Taxation or their delegate can disqualify an individual if they are satisfied that the individual has contravened the SISA. This disqualification takes effect immediately upon being issued. Furthermore, subsection 126A(7) mandates that details of such disqualification be published as a Notifiable Instrument in the Federal Register of Legislation. The Act imposes significant obligations on parties it governs, particularly those who are or become disqualified. Section 126K explicitly prohibits a disqualified person from being or acting as a trustee, investment manager, or custodian of a superannuation entity, or being a responsible officer or a body corporate that is a trustee, investment manager, or custodian, of such an entity. A crucial requirement is that the disqualified individual must not engage in any activities that would constitute a breach of this prohibition. Failure to adhere to these obligations can result in severe consequences. In terms of penalties and consequences, section 126K stipulates that it is an offence for a disqualified person who is aware of their disqualification status to act in any capacity outlined in the section. The maximum penalty for this offence is two years imprisonment, underscoring the seriousness of the Act's provisions. Additionally, under subsection 126A(5), the disqualification can be revoked either by the Commissioner's delegate on their own initiative or upon a written application from the disqualified individual. This provides a pathway for the disqualified person to seek a review or revocation of their disqualification, although it does not negate the immediate effect of the disqualification. Finally, section 344 of the SISA allows a disqualified person who is dissatisfied with the decision to request the Commissioner to reconsider it. This reconsideration request must be made in writing within 21 days of receiving notice of the disqualification and must include the reasons why the decision is believed to be incorrect. This provision ensures that there is a mechanism for addressing grievances and potentially rectifying perceived injustices in the disqualification process.