Notice of Disqualification – Soo Hyang Kroehn – 23 October 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Commonwealth Parliament to provide a framework for the supervision and regulation of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members. This legislation addresses the need for stringent oversight and governance within the superannuation sector to prevent mismanagement and ensure compliance with regulatory standards. The SISA introduces provisions for the disqualification of individuals who have acted irresponsibly in their roles as trustees, investment managers, or custodians of superannuation entities, thereby safeguarding the financial well-being of superannuation members. The policy objective is to maintain the integrity and stability of the superannuation system by deterring misconduct and ensuring that those responsible for managing superannuation funds are fit and proper persons.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration of superannuation entities, including trustees, investment managers, custodians, and responsible officers. The Act’s jurisdictional reach extends nationally, applying to all superannuation entities within the Commonwealth of Australia. It provides a framework for the regulation and supervision of the superannuation industry to ensure compliance with statutory obligations and protect the interests of superannuation members. The Act also includes provisions for disqualifying individuals who have been responsible officers of corporate trustees and have contravened the Act in a manner that warrants such action. The disqualification is effective immediately upon notice, and the disqualified person is prohibited from acting in any capacity that involves the management or administration of superannuation entities. The Act can extend or restrict its application through subordinate instruments, which may provide further detail on specific aspects of the legislation. Exclusions or exemptions are generally limited to cases where the contraventions are minor or have been rectified, or where other mitigating circumstances exist.

Key Provisions

The key operative sections of the notice include subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA), which mandates the Commissioner of Taxation or their delegate to notify the disqualified individual of the decision. This section also specifies the grounds for the disqualification, which is grounded on subsection 126A(2) of the SISA. Here, the Commissioner must be satisfied that the corporate trustee of one or more superannuation entities has contravened the SISA, and that the individual in question was a responsible officer at the time of these contraventions, with the number and seriousness of the contraventions justifying the disqualification. The notice of disqualification takes immediate effect on the date it is issued. The Act imposes specific obligations on the parties it governs. For instance, section 126K of the SISA mandates that a disqualified person must not act or be involved as a trustee, investment manager, or custodian of a superannuation entity, nor should they serve as a responsible officer or be part of a body corporate that holds such roles. Violation of this prohibition constitutes a criminal offence, as outlined in the notice. Additionally, under subsection 126A(5) of the SISA, the Commissioner may choose to revoke the disqualification either on their own initiative or in response to a written application by the disqualified person. The consequences for breaching the provisions of the SISA are severe. Section 126K specifies that it is an offence for a disqualified person to act in the prohibited capacities, with the maximum penalty being two years imprisonment. Furthermore, the disqualification notice itself indicates that details of the disqualification will be published as a notifiable instrument in the Federal Register of Legislation, thereby making it publicly known. For those dissatisfied with the decision, section 344 of the SISA provides a recourse to request reconsideration from the Commissioner within 21 days of receiving the notice. This request must be in writing and provide the reasons for dissatisfaction with the decision.