Notice of Disqualification – Sean McCormick - 5 June 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to ensure the proper management and regulation of superannuation funds in Australia. This legislation was introduced to address the need for effective oversight and accountability within the superannuation industry, protecting the interests of superannuation fund members. The SISA was enacted by the Parliament of Australia, with the aim of maintaining the integrity and stability of the superannuation system. The policy objective of the Act is to ensure that trustees, investment managers, and custodians of superannuation entities adhere to the regulatory requirements, thereby safeguarding the financial well-being of individuals relying on superannuation funds for their retirement. The Act provides mechanisms for disqualifying individuals who engage in misconduct or breaches of the law, as seen in the case of Sean McCormick's disqualification under subsection 126A(2) of the SISA.

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. The Act imposes obligations and restrictions on trustees, investment managers, and custodians of superannuation entities, as well as on responsible officers of corporate trustees. The geographic and jurisdictional reach of the Act is national, applying across all states and territories of Australia. The Act includes provisions for disqualifying individuals from acting in certain roles if they are found to have contravened the Act, with the disqualification taking immediate effect. Any disqualified person found to be acting in a restricted role faces the risk of criminal penalties, including up to two years in jail. The Act allows for the disqualification to be revoked, either by the Commissioner on their own initiative or following a written application by the disqualified person. Additionally, the Act provides for reconsideration of decisions by the Commissioner if the affected party is dissatisfied with the outcome, requiring a written request within 21 days of receiving the notice of decision.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) in this context are sections 126A and 126K. Section 126A(2) empowers the Commissioner of Taxation to disqualify a person from being a responsible officer if they are satisfied that the corporate trustee of one or more superannuation entities has contravened the SISA, and the number of contraventions provides grounds for disqualification. Section 126A(6) requires the Commissioner to give the disqualified person written notice of the disqualification, as evidenced by the notice provided to Sean McCormick. Section 126K specifies the offences and penalties related to a disqualified person continuing to act as a trustee, investment manager, or custodian of a superannuation entity, or being a responsible officer of a body corporate that is a trustee, investment manager, or custodian. The obligations imposed by the SISA on Sean McCormick, as a result of this disqualification, include refraining from acting as a responsible officer for any superannuation entity. Under section 126K, this means he cannot be involved in the management or administration of a superannuation fund, even if it is not the fund for which he was disqualified. This prohibition extends to any role that would require him to manage or oversee the financial or operational aspects of a superannuation entity. The Commissioner of Taxation, as the governing authority, is responsible for monitoring compliance with these obligations and taking action against any breaches. Failure to comply with the disqualification under section 126K is an offence under the SISA, with significant civil and criminal consequences. The maximum penalty for committing this offence is two years imprisonment, as stated in Note 2. This highlights the seriousness of the offence and the need for disqualified individuals to strictly adhere to the terms of their disqualification. Additionally, the Commissioner of Taxation may take further action, such as revoking the disqualification or imposing additional penalties, if a disqualified person is found to be in breach of the Act. The Commissioner of Taxation also has the authority to revoke the disqualification under subsection 126A(5) of the SISA. This can occur on the Commissioner’s own initiative or in response to a written application by the disqualified person. Such revocation would require a formal assessment of whether the grounds for the original disqualification no longer exist, such as a change in the circumstances of the contraventions or the person’s role. If Sean McCormick wishes to challenge the decision, he can request a reconsideration under section 344 of the SISA. This request must be made in writing within 21 days of receiving the notice and must include the reasons why he believes the decision is incorrect.