Notice of disqualification - Riazur Rahman Mohammed - 16 January 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for effective supervision and regulation of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members. The Act was introduced by the Commonwealth Parliament to ensure that superannuation entities operate in a manner that safeguards the financial well-being of fund members and maintains public confidence in the industry. The policy objective of the Act is to provide a robust framework for the oversight of trustees, investment managers, and custodians of superannuation entities, thereby mitigating risks and promoting transparency and accountability within the sector. In accordance with the Act, individuals found to be responsible for repeated breaches of the regulatory requirements may face disqualification from managing superannuation entities, with potential criminal penalties for those who continue to act in prohibited capacities post-disqualification.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the superannuation industry, particularly those acting as trustees, investment managers, or custodians of superannuation entities. The Act's jurisdiction extends across Australia, as it is a Commonwealth legislation. The Act specifically targets responsible officers of corporate trustees who contravene the SISA, with the potential outcome being disqualification from performing certain roles within the superannuation industry. This disqualification is effective immediately upon issuance, and the details are to be published as a Notifiable Instrument in the Federal Register of Legislation. Notably, the Act also provides for the possibility of revocation of disqualification under certain conditions. Any disqualified person who knowingly acts in a prohibited capacity commits an offence, which carries a maximum penalty of two years imprisonment. Furthermore, the Act allows for an internal review of the disqualification decision by the Commissioner if the affected party is dissatisfied with the outcome.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes various sections that are instrumental in regulating the superannuation industry. Of particular note is section 126A, which is pivotal in the context of disqualification notices. Subsection 126A(6) requires the delegate of the Commissioner of Taxation to issue a notice when disqualifying a person, as seen in the notice to Riazur Rahman Mohammed. This subsection mandates that the notice must be given to the individual and includes specific details of the disqualification. Additionally, subsection 126A(2) stipulates the criteria under which a person can be disqualified, which in this case pertains to the contravention of the SISA by a corporate trustee while the individual was a responsible officer. The Act imposes several obligations on the parties it governs. Notably, section 126K mandates that a disqualified person must refrain from acting or being a trustee, investment manager, or custodian of a superannuation entity. This is crucial to ensure that individuals who have been found to have contravened the SISA do not continue to have a role in managing superannuation funds, thereby protecting the interests of superannuation fund members. Failure to comply with this obligation can result in severe penalties, reinforcing the importance of adhering to the Act’s requirements. In terms of penalties and consequences, the Act is quite stringent. Under section 126K, it is an offence for a disqualified person to act in any capacity involving the management of superannuation entities. The maximum penalty for this offence, as outlined in the Act, is two years imprisonment. This severe penalty underscores the seriousness with which the Act treats breaches of its provisions, particularly those involving the management of superannuation funds. Furthermore, subsection 126A(5) provides that the disqualification may be revoked either on the initiative of the delegate or upon the written application of the disqualified person, offering a potential pathway for reinstatement under certain conditions.