Notice of Disqualification – Timothy Daly - 16 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to ensure the proper management and supervision of superannuation entities in Australia, addressing the need for robust regulatory oversight to protect superannuation funds and beneficiaries. This legislation was introduced by the Australian Parliament and aims to maintain high standards of conduct and compliance within the superannuation industry. The Act provides a framework for the regulation of trustees, investment managers, and custodians of superannuation entities, with specific provisions to address breaches and protect the interests of superannuation fund members. The disqualification process outlined in the Act serves as a mechanism to deter misconduct and maintain the integrity of the superannuation system by barring individuals who have engaged in serious or repeated breaches of the Act from participating in the management of superannuation entities.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to any individual or entity involved in the administration or management of superannuation funds in Australia, particularly focusing on trustees, investment managers, and custodians of superannuation entities. The Act has a national reach and applies across all jurisdictions in Australia, including the Commonwealth, states, and territories. The legislation targets responsible officers of corporate trustees who may have contravened the provisions of the SISA, providing grounds for disqualification. The scope of the Act is extended through various subsections and sections that specify the conduct and transactions that can lead to disqualification, as well as the process and consequences of such disqualification. Notably, the Act includes provisions for the publication of disqualification notices as Notifiable Instruments, ensuring transparency and accountability. Additionally, there are specific exclusions and exemptions detailed within the Act, as well as penalties for contravening the disqualification orders, which can include imprisonment. The Act also allows for the revocation of disqualifications under certain conditions, providing a pathway for review and reconsideration.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) in this context include subsection 126A(2) and subsection 126A(6). Subsection 126A(2) allows for the disqualification of an individual who is a responsible officer of a corporate trustee of a superannuation entity if the corporate trustee has contravened the SISA on multiple occasions. Subsection 126A(6) mandates that the Commissioner of Taxation or their delegate must give written notice of the disqualification to the individual, which is detailed in the notice provided to Timothy Daly. The obligations and requirements imposed by the Act on the parties it governs are significant. Specifically, the Act requires that if the corporate trustee of a superannuation entity contravenes the SISA on multiple occasions, and an individual was a responsible officer at the time of the contraventions, the individual can be disqualified from performing certain roles. This includes roles such as being a trustee, investment manager, or custodian of a superannuation entity, or being a responsible officer of a body corporate that holds any of these roles. The legislation also imposes serious consequences for breaches. Under section 126K of the SISA, it is an offence for a disqualified person who is aware of their disqualification to act in any of the prohibited roles. The maximum penalty for committing this offence is two years imprisonment. This underscores the gravity with which the SISA treats non-compliance, especially in roles that directly impact the management and supervision of superannuation entities. Additionally, the Act provides mechanisms for potential revocation of the disqualification. Subsection 126A(5) of the SISA allows for the disqualification to be revoked either on the initiative of the Commissioner or upon a written application by the disqualified person. For individuals like Timothy Daly, this provides a pathway to potentially having their disqualification lifted if circumstances change or if there is a valid reason to appeal the decision. Finally, under section 344 of the SISA, if an individual is affected by the disqualification decision and is not satisfied with it, they can request the Commissioner to reconsider the decision. This reconsideration must be requested in writing within 21 days of receiving the notice of the decision and must include the reasons why the individual believes the decision is incorrect. This ensures that there is a formal process for challenging the decision if the individual believes it to be unjust.