Notice of Disqualification – Sasha Cross - 6 June 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide for the prudential supervision of the superannuation industry in Australia, ensuring the protection of superannuation funds and their members. The Act was introduced to address the need for robust regulation and oversight of entities managing superannuation funds, aiming to prevent misconduct and financial mismanagement that could adversely affect retirees and their families. Enacted by the Commonwealth Parliament, the policy objective of the SISA is to safeguard the financial interests of superannuation fund members by enforcing strict compliance standards and regulatory measures on trustees, investment managers, and other responsible officers. The Act includes provisions for the disqualification of individuals found to be unfit to manage superannuation funds due to repeated contraventions of the Act, as evidenced by the notice of disqualification issued to Sasha Cross on 6 June 2025, highlighting the serious consequences of non-compliance and the commitment to maintaining the integrity of the superannuation system.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to the trustees, responsible officers, and other related persons or entities within the superannuation industry. The Act specifically targets individuals who are responsible officers of corporate trustees of superannuation entities and imposes stringent obligations on them to ensure compliance with the Act’s requirements. The geographic and jurisdictional reach of the SISA is nationwide, as it is a Commonwealth Act, thereby extending its applicability across all states and territories of Australia. The Act does not specify any exclusions or exemptions, thereby imposing its obligations broadly on all relevant entities and persons within its purview. The application of the Act can be extended or restricted through subordinate instruments, as noted in the notice of disqualification issued to Sasha Cross. This particular notice, which serves as a Notifiable Instrument, is published in the Federal Register of Legislation, and it highlights the serious consequences of contravening the Act, including potential disqualification from acting in a responsible capacity within the superannuation industry.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains provisions that allow for the disqualification of individuals who have been responsible officers of a corporate trustee that has contravened the Act. In this instance, Sasha Cross has been disqualified under subsection 126A(2) of the SISA due to repeated contraventions by the corporate trustee, for which Sasha was a responsible officer at the time (subsection 126A(6)). This disqualification notice, issued by Emma Rosenzweig, a delegate of the Commissioner of Taxation, specifies that Sasha is no longer eligible to act in a responsible capacity within the superannuation industry due to the nature and frequency of the contraventions. The disqualification takes immediate effect on the day it is issued. The SISA imposes certain obligations on individuals such as Sasha, who are or have been responsible officers of corporate trustees. These individuals are required to ensure that the corporate trustees they are associated with comply with the provisions of the SISA. This includes adhering to the legal and regulatory standards set out for the management and operation of superannuation entities. The Act mandates that any contraventions by the trustee must be reported and rectified to avoid any potential disqualification of responsible officers. Furthermore, responsible officers must be diligent in their oversight to prevent repeated or significant breaches. Failure to adhere to the requirements of the SISA can result in serious consequences. According to section 126K of the Act, it is an offence for a disqualified person, who is aware of their disqualification status, to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer of a body corporate that holds such a role. The penalty for committing this offence can include up to two years imprisonment, highlighting the seriousness of bypassing disqualification orders. Additionally, the disqualification notice specifies that the details of the disqualification will be published in the Federal Register of Legislation as a Notifiable Instrument. The Act also provides avenues for review and potential revocation of disqualification orders. Subsection 126A(5) of the SISA allows for the disqualification to be revoked either by the authority on its own initiative or following a written application by the disqualified person. This offers Sasha an opportunity to seek relief from the disqualification if she believes it was unjust or if circumstances have changed. Furthermore, under section 344 of the SISA, Sasha has the right to request a reconsideration of the decision within 21 days of receiving the notice, provided she submits a written request outlining the reasons for her dissatisfaction with the decision.