Notice of Disqualification – Teresa Caratzas - 19 May 2026

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to address the need for effective oversight and regulation of the superannuation industry in Australia. This legislation was introduced to ensure the protection of superannuation fund members and beneficiaries by establishing a robust framework for the supervision and regulation of superannuation entities, their trustees, and other responsible officers. The Act was passed by the Australian Parliament with the policy objective of safeguarding the financial interests and welfare of superannuation fund participants, thereby promoting confidence in the superannuation system. One of the key mechanisms within the Act to achieve this objective is the power to disqualify individuals who have acted in a manner that contravenes the provisions of the Act, thereby ensuring that those who fail to uphold the required standards are prevented from participating in the management of superannuation funds.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to responsible officers of corporate trustees of superannuation entities, as well as to the trustees themselves. The Act has a national reach across Australia, operating under the Commonwealth jurisdiction. The primary focus is on ensuring compliance with standards within the superannuation industry, which includes conduct, transactions, and management of superannuation funds. The Act does not specify exclusions or exemptions, except for cases where a disqualification can be revoked based on certain conditions. The legislative framework is supplemented by subordinate instruments that provide detailed provisions and mechanisms for enforcement, such as the ability to disqualify individuals and publish details of such actions as Notifiable Instruments. Individuals who knowingly act in a capacity they have been disqualified from, such as being a trustee or a responsible officer, face significant penalties, including up to two years in jail. Disqualifications under the Act are subject to review, and affected parties have the right to request reconsideration within 21 days of receiving notice of the decision.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) includes specific provisions for the disqualification of individuals who have acted as responsible officers of a corporate trustee in a situation where the trustee has contravened the Act. Section 126A(2) outlines the circumstances under which a person may be disqualified, namely when they were a responsible officer at the time of the contraventions, and the seriousness of these contraventions provides grounds for disqualification. Section 126A(6) mandates that a notice of disqualification must be given to the person, as seen in the notice to Teresa Caratzas. This disqualification takes effect on the date of issuance, as stated in the notice dated 19 May 2026. Under the Act, there are stringent obligations imposed on parties involved in superannuation entities. The Act requires responsible officers to ensure compliance with all provisions of the SISA, and failure to do so can lead to personal disqualification. Section 126K of the SISA further stipulates that 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 roles. This obligation underscores the importance of adhering to the Act's requirements to avoid severe consequences. In terms of penalties and consequences for breach, section 126K of the SISA establishes that knowingly acting in any of the prohibited roles while disqualified is an offence. The maximum penalty for this offence is two years imprisonment. Additionally, the disqualification notice itself, as detailed in subsection 126A(7), mandates that the details of the disqualification be published as a Notifiable Instrument in the Federal Register of Legislation. This public disclosure serves as both a deterrent and a means of ensuring transparency and accountability within the superannuation industry. Furthermore, section 344 of the SISA provides recourse for those who are dissatisfied with the disqualification decision. Individuals affected by such a decision have the right to request the Commissioner to reconsider the decision in writing within 21 days of receiving the notice. This provision allows for a review process, offering a chance for the disqualified person to contest the decision and provide reasons why they believe the disqualification is unjust.