Notice of Disqualification – Paul Silverberg - 8 September 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for stringent supervision and regulation of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members. The Act was introduced to fill a critical gap in ensuring that superannuation trustees, investment managers, and custodians operate with integrity and in the best interests of the fund members. The SISA was enacted by the Australian Parliament, reflecting a policy objective to safeguard superannuation funds and enhance the accountability of those responsible for managing these funds. The legislation empowers the Commissioner of Taxation to disqualify individuals from acting as responsible officers of superannuation entities if they are found to have contravened the provisions of the Act, particularly when the seriousness of the contraventions warrants such action. This legislative framework is designed to maintain the integrity and stability of the superannuation system, ensuring that the retirement savings of Australians are managed responsibly and ethically.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers of corporate trustees within the superannuation industry, and it carries Commonwealth jurisdiction, affecting entities and individuals across Australia. The Act targets conduct and transactions involving superannuation entities, and it specifically aims to disqualify individuals like Paul Silverberg who have been associated with corporate trustees contravening the Act, provided the contraventions are serious enough to warrant such action. The Act’s reach is broad, extending to any person acting in a responsible officer capacity within a corporate trustee of a superannuation entity. Under section 126K, it is an offence for a disqualified person to continue to be or act as a trustee, investment manager, or custodian of a superannuation entity, with the potential penalty being up to two years in jail. The disqualification can be revoked either on the initiative of the Commissioner or upon a written application by the disqualified person, as outlined in subsection 126A(5) of the Act. Additionally, section 344 allows for a request to reconsider the decision within 21 days of receiving the notice of disqualification.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) outlines specific provisions regarding the disqualification of individuals from holding positions within superannuation entities. Section 126A(2) permits the Commissioner of Taxation to disqualify a person if they believe the individual was a responsible officer of a corporate trustee at the time of a contravention of the SISA, and the seriousness of the contravention warrants such action. In this case, Paul Silverberg has been disqualified under subsection 126A(6), which mandates that the Commissioner or their delegate must provide written notice of the disqualification to the affected individual. The notice specifies that the disqualification arises due to the corporate trustee's contravention of the SISA, with the seriousness of these breaches justifying the disqualification of Paul Silverberg. The Act imposes clear obligations on individuals who are disqualified from acting as responsible officers of superannuation entities. Section 126K of the SISA outlines that it is an offence for a disqualified person to act as a trustee, investment manager, or custodian of a superannuation entity, or to be associated with a body corporate that holds such roles. This prohibition extends to any responsible officer position within these entities. The implications of these obligations are significant, as any contravention of these provisions can lead to serious consequences, including criminal charges. The SISA provides for stringent penalties for breaches of its provisions, particularly concerning disqualification orders. Under section 126K, the maximum penalty for knowingly acting in a capacity prohibited by the disqualification order is two years imprisonment. This reflects the seriousness with which the legislation treats compliance with disqualification orders, underscoring the importance of adhering to the Act's requirements. Additionally, the Act allows for the possibility of revocation of the disqualification under subsection 126A(5), either by the Commissioner's initiative or upon a written application by the disqualified person. Furthermore, section 344 of the SISA offers recourse for those dissatisfied with the disqualification decision, allowing them to request reconsideration from the Commissioner within 21 days of receiving notice of the decision, provided the request is made in writing and includes reasons for dissatisfaction.