Notice of Disqualification – Stephen Milton - 6 June 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Australian Parliament to address the need for regulation and oversight of the superannuation industry to protect the interests of superannuation fund members. The legislation provides a framework for the supervision and regulation of superannuation funds, including the establishment of the Australian Prudential Regulation Authority (APRA) and the Australian Taxation Office (ATO) as the primary regulatory bodies. The Act aims to ensure that superannuation funds are managed efficiently, economically, honestly, and faithfully, and that the interests of members are protected. The policy objective of the SISA is to maintain confidence in the superannuation system by promoting the efficient, economical, honest, and faithful management of superannuation funds and the protection of members’ interests. This is achieved through measures such as disqualification of individuals who have contravened the Act and the imposition of penalties for non-compliance. The Act includes provisions for the disqualification of individuals who have contravened the Act, including trustees, investment managers, custodians, and responsible officers of superannuation entities. The disqualification is intended to prevent individuals who have demonstrated a lack of fitness to manage superannuation funds from continuing to do so. The Act also includes provisions for the publication of disqualification notices as Notifiable Instruments in the Federal Register of Legislation, which serves to inform the public of the disqualification of individuals and to deter others from engaging in similar conduct. Overall, the SISA plays a critical role in ensuring the integrity and stability of the superannuation system in Australia.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration, management, or operation of superannuation funds, including trustees, investment managers, and custodians. The act operates on a Commonwealth level, regulating the superannuation industry across Australia. It sets out the standards and compliance requirements for the conduct and transactions of entities within this industry, ensuring the protection of superannuation funds and beneficiaries. The act applies to both corporate and individual trustees, as well as responsible officers and body corporates that are trustees, investment managers or custodians of a superannuation entity. There are no specific exclusions mentioned within the act; however, certain activities or entities may be subject to additional regulations or oversight by other legislative instruments or authorities. The SISA extends its application through subordinate instruments and regulations that provide further detail on specific requirements and processes.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains key provisions governing the disqualification of individuals involved in the management of superannuation entities. Section 126A(1) of the Act allows for the disqualification of a person if there are grounds, such as multiple contraventions of the Act, to warrant such a decision. When a person is disqualified, the disqualification takes immediate effect as per subsection 126A(6). The notice of disqualification, such as the one issued to Stephen Milton, must be provided in writing and specify the reasons for the disqualification. As per subsection 126A(7), details of the disqualification will be published in the Federal Register of Legislation. The Act imposes several obligations on disqualified individuals. Under section 126K, 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 or a body corporate that is a trustee, investment manager, or custodian of a superannuation entity. This prohibition is in place to ensure that disqualified individuals do not continue to have a role in managing superannuation funds. The Act also provides mechanisms for the revocation of a disqualification notice. Under subsection 126A(5), the disqualification can be revoked either on the initiative of the Commissioner or by a written application from the disqualified person. The consequences for breaching the disqualification provisions are severe. Section 126K stipulates that any disqualified person who knowingly contravenes the Act by acting in a prohibited capacity commits an offence. The maximum penalty for this offence is two years imprisonment. This reflects the seriousness with which the Act treats breaches of the disqualification provisions. Additionally, section 344 allows for a reconsideration of the disqualification decision if the affected person is dissatisfied. Any request for reconsideration must be made in writing within 21 days of receiving the notice of the disqualification and must provide the reasons for believing the decision is wrong.