Notice of Disqualification - Steve Bayad - 24 April 2026

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Parliament of Australia to address the need for stringent oversight and regulation of the superannuation industry, ensuring it operates in the best interests of its members and beneficiaries. The Act provides mechanisms for the regulation of trustees, investment managers, and custodians of superannuation funds, aiming to protect the retirement savings of Australians. The enactment of this legislation was driven by a policy objective to safeguard the superannuation industry against mismanagement and misconduct, thereby fostering confidence in the system. One notable provision within the Act is the authority to disqualify individuals found to have contravened its provisions, which serves as a deterrent and a means of maintaining the integrity of the industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and administration of superannuation funds in Australia. Specifically, the Act targets trustees, investment managers, custodians, and responsible officers of superannuation entities, imposing stringent regulatory standards to ensure the integrity and proper functioning of the superannuation industry. The geographic reach of the Act is national, governing practices across all states and territories of Australia. The Act extends its application through various subordinate instruments, which provide detailed regulations and guidelines that supplement the primary legislation. Additionally, the Act outlines specific exclusions and exemptions, ensuring that certain entities and activities may be excluded from its purview based on defined criteria. The enforcement of the Act includes severe penalties for non-compliance, such as disqualification and potential imprisonment, underscoring the seriousness with which the legislation treats breaches of its provisions.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes several key provisions that govern the regulation and supervision of the superannuation industry in Australia. Section 126A(1) of the Act empowers a delegate of the Commissioner of Taxation to disqualify individuals from acting in certain roles within the superannuation industry if they have contravened the Act and the seriousness of the contraventions warrants such action. This is demonstrated in the notice of disqualification issued to Steve Bayad, where it is stated that the delegate, Ben Kelly, has disqualified him under subsection 126A(1) because of the seriousness of his contraventions of the SISA. This disqualification takes immediate effect as per subsection 126A(6) of the Act. The Act imposes specific obligations on the parties it governs. For instance, under section 126K of 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 or a body corporate that holds such a role. This means that once disqualified, individuals must cease any activities that involve managing or overseeing superannuation funds. Failure to comply with these obligations can lead to serious consequences, as detailed in the subsequent sections. Breach of these obligations can result in significant penalties. Section 126K of the SISA stipulates that any disqualified person who knowingly continues to act in a prohibited capacity commits an offence, which carries a maximum penalty of two years imprisonment. This underscores the importance of adhering to the provisions of the Act and the seriousness with which the law views non-compliance. Additionally, the Act allows for the possibility of revocation of the disqualification under subsection 126A(5), either by the delegate on their own initiative or upon a written application by the disqualified person. For those affected by the disqualification, the Act provides a mechanism for reconsideration of the decision. Under section 344 of the SISA, if an individual is not satisfied with the decision to disqualify them, they can request the Commissioner to reconsider the decision in writing within 21 days of receiving notice. This provision ensures that there is a formal process in place for individuals to challenge decisions that may have significant impacts on their professional careers and financial responsibilities.