Notice of Disqualification – Scott Freedman - 24 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for stringent regulation within the superannuation industry to protect the interests of superannuation fund members. This legislation was introduced by the Australian Parliament and aims to ensure the proper management and administration of superannuation funds. The Act provides the Commissioner of Taxation with the authority to disqualify individuals from performing certain roles within the superannuation sector if they are found to have contravened the Act. The disqualification serves as a significant deterrent against misconduct, thereby upholding the integrity and reliability of superannuation entities. In the case of Scott Freedman, a notice of disqualification has been issued under subsection 126A(6) of the SISA, highlighting the Act's role in maintaining high standards of conduct within the industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration and management of superannuation entities in Australia. This includes trustees, investment managers, custodians, and responsible officers of bodies corporate that are trustees, investment managers, or custodians of superannuation entities. The Act has a national reach, governing practices across the Commonwealth of Australia, including states, territories, and relevant entities within these jurisdictions. The Act includes provisions for disqualifying individuals who contravene its requirements, with such disqualifications serving as a significant deterrent against non-compliance. Exclusions and exemptions from the Act are not broadly stated within the notice, but specific provisions of the Act itself may contain more detailed information regarding these aspects. The Act allows for the extension or restriction of its application through subordinate instruments, which may further define the scope and application of the legislation. In the case of Scott Freedman, the notice of disqualification under subsection 126A(2) of the SISA is effective immediately, and details of this disqualification will be published as a Notifiable Instrument in the Federal Register of Legislation.

Key Provisions

The notice of disqualification issued to Scott Freedman under subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA) outlines the grounds for his disqualification, which is based on his contravention of the SISA. This contravention, which is believed to have occurred on multiple occasions, provides sufficient grounds for the disqualification under subsection 126A(2) of the Act. The disqualification is effective from the day it is made, which is 24 July 2025. The Act imposes several obligations and requirements on Scott Freedman as a result of his disqualification. Notably, under section 126K of the SISA, 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 or a body corporate performing such roles. This restriction is intended to prevent disqualified individuals from managing superannuation funds, thereby protecting the interests of superannuation fund members. Any breach of the provisions outlined in section 126K can result in severe penalties. Specifically, the maximum penalty for committing this offence is two years in jail, underscoring the seriousness of the Act's provisions in safeguarding the superannuation industry. This stringent penalty is designed to deter disqualified individuals from engaging in activities that could harm the superannuation system. Additionally, the disqualification can be revoked under subsection 126A(5) of the SISA. This revocation can occur either on the initiative of the Commissioner or based on Scott Freedman's written application. For those affected by the decision and dissatisfied with it, section 344 of the SISA provides an avenue for reconsideration. Any request for reconsideration must be made in writing within 21 days of receiving notice of the decision and must detail the reasons why the decision is believed to be incorrect.