Notice of Disqualification – Scott Mackinnon - 16 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to address significant issues within the superannuation industry, aiming to ensure proper management and supervision of superannuation funds. This Act was introduced by the Commonwealth Parliament to provide a robust regulatory framework that protects the interests of superannuation fund members. One of the critical gaps it aimed to fill was the need for stringent oversight and accountability of trustees, investment managers, and custodians of superannuation entities to prevent misconduct and financial mismanagement. The policy objective behind the Act is to maintain the integrity and stability of the superannuation system, safeguarding the retirement savings of Australians.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to the superannuation industry within Australia, governing the conduct of trustees, investment managers, custodians, and responsible officers of superannuation entities. This legislation covers a broad spectrum of activities including the management and administration of superannuation funds, and the Act ensures compliance with statutory obligations designed to protect the interests of superannuation fund members. The Act applies to individuals and corporate entities that hold positions of responsibility within superannuation entities, ensuring they adhere to specified standards of conduct and governance. The geographic reach of the Act is national, applying across the Commonwealth of Australia, and it extends its reach through subordinate instruments to specify detailed compliance requirements and penalties for non-compliance. Notably, the Act includes provisions for the disqualification of responsible officers found to have contravened its provisions, with such disqualifications being subject to review and potential revocation under specific conditions. The Act does not specify particular exclusions or thresholds but rather applies its provisions broadly to the superannuation sector, ensuring high standards of integrity and accountability.

Key Provisions

The notice of disqualification provided to Scott Mackinnon under subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA) informs him that he has been disqualified from certain roles related to superannuation entities. This disqualification stems from the belief that the corporate trustee of one or more superannuation entities, for which Scott was a responsible officer, contravened the SISA on multiple occasions. This number of contraventions provides grounds for the disqualification. The disqualification takes immediate effect on the date of the notice. The Act imposes several obligations and requirements on the parties and entities it governs. Firstly, responsible officers of corporate trustees must ensure compliance with the SISA to avoid disqualification. Secondly, the Commissioner of Taxation, through their delegate, has the authority to disqualify individuals if there are repeated breaches of the Act. Additionally, the Act requires that any disqualification notice be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and accessibility of such decisions to the public. Under the SISA, it is an offence for a disqualified person 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 roles. Section 126K of the SISA clearly outlines that knowingly engaging in these activities while disqualified carries severe consequences, including a potential maximum penalty of two years in jail. This stringent penalty underscores the seriousness with which the Act treats breaches of disqualification orders. Furthermore, the Act provides mechanisms for the possible revocation of a disqualification. Subsection 126A(5) allows for the disqualification to be revoked either on the initiative of the Commissioner or based on a written application from the disqualified individual. This provides a pathway for review and potential reinstatement, contingent upon the circumstances and compliance with the Act's requirements. Additionally, under section 344 of the SISA, an affected individual has the right to request a reconsideration of the decision if they are dissatisfied with the disqualification. This request must be made in writing within 21 days of receiving the notice and should include the reasons for believing the decision is incorrect.