Notice of Disqualification –Thomas Pitham - 23 June 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted by the Parliament of Australia to address the need for effective regulation and oversight of the superannuation industry, ensuring that trustees, investment managers, and custodians act in the best interests of superannuation fund members. This legislation provides a framework for the regulation and supervision of the superannuation industry, including the powers to disqualify individuals who engage in misconduct or breaches of the Act. The policy objective of the Act is to protect the interests of superannuation fund members by promoting efficient, honest, and responsible administration of superannuation funds, thereby maintaining public confidence in the system. In the case of Thomas Pitham, the Act was invoked to disqualify him from acting in any capacity related to the administration of a superannuation entity, following his contravention of the Act. This disqualification was issued by a delegate of the Commissioner of Taxation and is intended to prevent Pitham from continuing to engage in activities that could potentially harm the interests of superannuation fund members. The disqualification is effective immediately and will be published as a Notifiable Instrument in the Federal Register of Legislation.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities within the superannuation industry, including trustees, investment managers, and custodians of superannuation entities. The Act's jurisdictional reach is Commonwealth, as it is a federal statute that applies across Australia. The Act imposes disqualifications on individuals who contravene its provisions, as illustrated in the notice of disqualification for Thomas Pitham, where he has been disqualified due to multiple contraventions of the Act. This disqualification prohibits him from acting as a trustee, investment manager, or custodian of a superannuation entity, and any such actions can result in an offence with a maximum penalty of two years imprisonment. The Act allows for the disqualification to be revoked either by the authority that imposed it or upon the written application of the disqualified individual. Furthermore, affected individuals have the right to request a reconsideration of the decision within 21 days of receiving notice, as stipulated in section 344 of the SISA. This notice of disqualification will also be published as a Notifiable Instrument in the Federal Register of Legislation under subsection 126A(7) of the SISA.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) sets out the regulatory framework for the supervision of superannuation entities. One of the key provisions under this Act is the disqualification of individuals who have contravened the SISA, which can be found in subsection 126A(1) (1). This section allows for the disqualification of a person if they have breached the Act on one or more occasions, and the number of contraventions provides grounds for such a disqualification. The notice of disqualification, as provided to Thomas Pitham, is issued by a delegate of the Commissioner of Taxation, as outlined in subsection 126A(6) (2). This notice, once issued, becomes effective on the day it is made, as stated in the notice to Thomas Pitham. The obligations imposed by the SISA on entities and individuals governed by the Act include adherence to the regulations and provisions outlined within the Act. For example, under section 126K (3), 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 if they know they are disqualified. This highlights the stringent requirements placed on individuals to ensure they do not engage in activities that could contravene the SISA. Breaching these provisions can have serious consequences. Under section 126K, the maximum penalty for knowingly being or acting as a disqualified person in relation to a superannuation entity is two years imprisonment (4). This indicates the seriousness with which the Act treats non-compliance. Additionally, under subsection 126A(5), the disqualification can be revoked either on the initiative of the Commissioner or upon a written application by the disqualified person, providing a potential avenue for relief (5). Furthermore, if a person is dissatisfied with the decision to disqualify them, they have the right to request the Commissioner to reconsider the decision within 21 days of receiving notice, as provided under section 344 (6).