Notice of Disqualification – Sadaf Khan - 16 January 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for oversight and regulation of the superannuation industry in Australia, ensuring the protection of superannuation funds and the interests of members. This legislation provides the legal framework for the supervision of superannuation entities, trustees, investment managers, and custodians. The SISA was enacted by the Australian Parliament to fill a significant gap in the regulation of the superannuation industry, which was previously inadequately supervised. The policy objective of the SISA is to safeguard the superannuation savings of Australians by ensuring that trustees and other responsible officers comply with legislative requirements, thereby maintaining the integrity and stability of the superannuation system. The SISA empowers the Commissioner of Taxation to disqualify individuals from acting in responsible roles within superannuation entities if they have contravened the Act, as demonstrated in the case of Sadaf Khan, who has been disqualified under subsection 126A(2) of the SISA due to repeated breaches by the corporate trustee in which she served as a responsible officer.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration of superannuation funds, including trustees, investment managers, and custodians. The Act extends to the Commonwealth of Australia, providing a national framework for the supervision and regulation of the superannuation industry. The scope of the Act encompasses the conduct and transactions of entities and individuals who are responsible for managing superannuation entities. Specifically, the Act targets those who hold positions such as trustees, investment managers, or custodians of superannuation entities, ensuring compliance with the legal standards set forth to protect the interests of superannuation fund members. Any contraventions of the Act by these responsible officers can lead to disqualification, as evidenced by the notice issued to Sadaf Khan. This legislative framework includes provisions for the publication of disqualification notices as Notifiable Instruments in the Federal Register of Legislation, thereby extending its reach and ensuring transparency. Additionally, the Act provides for potential revocation of disqualifications and outlines penalties for disqualified persons who continue to engage in restricted activities, with potential criminal sanctions of up to two years imprisonment.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains key provisions that outline the process for disqualifying individuals from holding certain positions within superannuation entities. Specifically, section 126A(2) allows for the disqualification of an individual if the corporate trustee of one or more superannuation entities has contravened the SISA, and the individual was a responsible officer at the time of the contraventions. The disqualification takes effect immediately upon notice being given, as detailed in the notice to Sadaf Khan dated 16 January 2026. This notice, issued by Ben Kelly, a delegate of the Commissioner of Taxation, informs Sadaf Khan that she has been disqualified under subsection 126A(6) of the SISA, due to her role in the contraventions committed by the corporate trustee. Additionally, under subsection 126A(7), the details of this disqualification are to be published in the Federal Register of Legislation. The Act imposes several obligations on the parties it governs. Firstly, it requires responsible officers to ensure that their corporate trustees comply with all provisions of the SISA. This includes maintaining records and reporting mechanisms to demonstrate adherence to the Act's standards. Moreover, if a responsible officer is aware of any contraventions, they have an obligation to take appropriate action to rectify the situation. The Act also mandates that disqualified persons refrain from acting as trustees, investment managers, custodians, or responsible officers of superannuation entities, as outlined in section 126K. Failure to comply with these obligations can result in significant legal consequences. The SISA delineates specific offences and penalties for breaches of its provisions. Under section 126K, it is an offence for a disqualified person to act in any capacity as a trustee, investment manager, custodian, or responsible officer of a superannuation entity. The penalty for committing this offence can be severe, with a maximum penalty of two years imprisonment. This stringent penalty underscores the importance of compliance with the Act and the potential ramifications for non-compliance. Additionally, the Act provides for the possibility of revocation of the disqualification under subsection 126A(5), either on the initiative of the Commissioner or upon a written application by the disqualified person. This mechanism allows for the review and potential reinstatement of disqualified individuals under certain conditions. For those affected by a disqualification decision, the SISA offers a recourse for reconsideration. Under section 344, an individual who is not satisfied with the disqualification decision can request the Commissioner to reconsider it. This request must be made in writing within 21 days of receiving notice of the decision and must detail the reasons for dissatisfaction. This provision ensures that affected individuals have a formal mechanism to challenge the decision, thereby providing a level of procedural fairness and the opportunity for potential rectification of any perceived errors in the disqualification process.