Notice of Disqualification – Penang Finau - 28 May 2026

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted by the Australian Parliament to address the need for effective supervision and regulation of the superannuation industry, ensuring that trustees, investment managers, and custodians of superannuation entities act in the best interests of their members. The Act established the Australian Prudential Regulation Authority (APRA) and provided it with the authority to supervise and regulate the financial services industry, including superannuation funds. The policy objective of the Act is to protect the interests of superannuation fund members by ensuring that trustees and related entities comply with the legislative and regulatory requirements designed to safeguard their retirement savings. The Act includes provisions for disqualification of individuals who have breached these requirements, with significant penalties for non-compliance.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the supervision and management of superannuation funds in Australia. This includes trustees, investment managers, and custodians of superannuation entities, as well as responsible officers or bodies corporate that act in these capacities. The Act has a national reach, applying across all states and territories in Australia. The legislation aims to ensure the integrity and proper management of superannuation funds to protect the interests of fund members. There are no specific exclusions or exemptions outlined in the provided text, although the Act may extend its application through subordinate instruments to cover related conduct and transactions. Notably, the Act imposes significant penalties for disqualified persons who continue to act in their roles, with a maximum penalty of two years in jail. Additionally, the Act allows for the revocation of disqualifications and provides a mechanism for reconsideration of decisions by the Commissioner within a specified timeframe.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes specific provisions for the disqualification of individuals from participating in superannuation entities. Under subsection 126A(1), a delegate of the Commissioner of Taxation may disqualify an individual if certain criteria are met. This disqualification is immediate upon the issuance of the notice, as stated in subsection 126A(6). In the case of Penang Finau, this disqualification notice was issued by Ben Kelly, a delegate of the Commissioner of Taxation, effective from 28 May 2026. The SISA imposes clear obligations on disqualified individuals, as well as on superannuation entities that might be impacted by such disqualifications. Disqualified individuals are prohibited from acting or being a trustee, investment manager, or custodian of a superannuation entity, or a responsible officer or a body corporate that is a trustee, investment manager, or custodian of a superannuation entity, under section 126K. The act also mandates that details of the disqualification notice be published as a Notifiable Instrument in the Federal Register of Legislation, as outlined in subsection 126A(7). This ensures transparency and public notification of such disqualifications. Failure to comply with the disqualification provisions can lead to severe consequences. As noted in section 126K, it is an offence for a disqualified person to contravene the disqualification order. The maximum penalty for such an offence is two years in jail, indicating the seriousness with which the SISA treats breaches of these provisions. Furthermore, under subsection 126A(5), the disqualification may be revoked either on the initiative of the Commissioner or upon a written application by the disqualified individual. This provides a potential avenue for review and possible reinstatement, subject to the terms and conditions set forth in the Act. Additionally, section 344 of the SISA allows for reconsideration of the disqualification decision if the affected individual is dissatisfied with it. This reconsideration request must be made in writing within 21 days of receiving notice of the decision and should include the reasons why the decision is considered incorrect. This provision ensures that there is a formal process for addressing grievances and seeking rectification of what the individual may perceive as an unjust decision.