Notice of Disqualification – Scott Hawken – 17 February 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to provide a regulatory framework for the supervision of the superannuation industry in Australia, ensuring the protection of superannuation benefits and the maintenance of public confidence in the industry. This Act was introduced to address the need for stringent oversight and compliance within the superannuation sector, aiming to prevent misconduct and ensure that trustees and responsible officers adhere to the highest standards of governance and financial management. The SISA is administered by the Australian Parliament, with the policy objective of safeguarding the interests of superannuation fund members by enforcing regulatory compliance and penalising breaches. In the case of Scott Hawken, the notice of disqualification under subsection 126A(6) of the SISA was issued by Ben Kelly, a delegate of the Commissioner of Taxation, due to the contravention of the SISA by the corporate trustee of one or more superannuation entities. Hawken's disqualification was deemed necessary because, as a responsible officer at the time of these contraventions, the seriousness of the breaches warranted such action. The disqualification notice, which will be published as a Notifiable Instrument in the Federal Register of Legislation, prohibits Hawken from acting as a trustee, investment manager, or custodian of a superannuation entity, with the potential for a two-year jail term for non-compliance. The decision can be reconsidered by the Commissioner within 21 days of the notice, and the disqualification may also be revoked either on the initiative of the delegate or upon Hawken's written application.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) governs the regulation of the superannuation industry in Australia, ensuring that superannuation trustees, investment managers, and custodians adhere to specific standards to protect the interests of superannuation fund members. This act applies to responsible officers of corporate trustees within superannuation entities, imposing obligations and responsibilities on them to maintain compliance with the SISA. The geographic reach of the act is national, as it is a Commonwealth legislation. The act extends its application to various conduct and transactions within the superannuation industry, including the management and administration of superannuation funds. The act provides for disqualification of individuals from acting as trustees, investment managers, or custodians of superannuation entities if they are found to have contravened the SISA, with the disqualification being a significant deterrent to non-compliance. The act also allows for the revocation of disqualification under certain conditions, providing a pathway for individuals to potentially regain their eligibility to participate in the superannuation industry. Exclusions or exemptions from the act are limited, ensuring broad applicability across the industry. The act’s provisions are supplemented by subordinate instruments, which may further clarify or extend the application of the act, ensuring comprehensive regulation of the superannuation sector.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to the disqualification notice given to Scott Hawken include subsection 126A(2) and subsection 126A(6). Subsection 126A(2) provides the authority to disqualify an individual from being involved in superannuation entities if certain conditions are met, while subsection 126A(6) mandates that a written notice of the disqualification must be provided to the affected individual. The notice must detail the reasons for the disqualification and inform the individual that they are disqualified from participating in superannuation entities. This is exactly what is stated in the notice issued to Scott Hawken. The Act imposes specific obligations on parties or entities it governs, including responsible officers of corporate trustees. These individuals are required to ensure compliance with the SISA and must be aware of any contraventions occurring under their watch. In Scott Hawken's case, as a responsible officer of a corporate trustee, his failure to prevent or address the contraventions that occurred led to his disqualification. Additionally, the Act mandates that details of such disqualifications be published in the Federal Register of Legislation to ensure transparency and accountability. The SISA includes provisions that outline the offences and penalties for breaches. Specifically, under section 126K, it is an offence for a disqualified person to act as, or be, a trustee, investment manager, or custodian of a superannuation entity. This prohibition extends to being a responsible officer or a body corporate involved in these roles. The maximum penalty for such an offence is imprisonment for up to two years. The notice to Scott Hawken includes this information to make him aware of the legal consequences of any future contraventions. Furthermore, the Act provides mechanisms for revocation of disqualification either on the initiative of the authorities or upon a written application by the disqualified individual, as noted in subsection 126A(5). For Scott Hawken, this means there is a potential pathway to having his disqualification reviewed and possibly overturned under the right conditions. Lastly, the Act allows for recourse if an individual is dissatisfied with the decision to disqualify them. Under section 344, Scott Hawken, or any other affected party, has the right to request the Commissioner to reconsider the decision. This request must be made in writing within 21 days of receiving the notice of disqualification and should include the reasons why the decision is believed to be incorrect. This provision ensures that there is a formal process in place for addressing grievances related to disqualifications under the SISA.