Notice of Disqualification – Tony Barhoum – 25 August 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to provide comprehensive supervision and regulation of the superannuation industry, ensuring that it operates in the best interests of members and their dependants. The Act was introduced to address the need for a robust regulatory framework to oversee superannuation funds, trustees, and other related entities, ensuring compliance with the standards necessary to protect the financial well-being of participants. The policy objective of the Act is to maintain the integrity and stability of the superannuation system, safeguarding the interests of members by preventing misconduct and ensuring proper management of funds. The Act is administered by the Parliament of Australia, with the Commissioner of Taxation having the authority to disqualify individuals found to have contravened its provisions.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the superannuation industry in Australia. This Act is primarily concerned with the regulation and supervision of trustees, investment managers, and custodians of superannuation entities. The geographic reach of the Act is national, as it pertains to the entire Commonwealth of Australia. The Act specifically targets individuals who have contravened its provisions and may disqualify them from acting in roles such as trustees, investment managers, or custodians of superannuation entities. The disqualification can be imposed if there is a sufficient number of contraventions that warrant such action. Once disqualified, the individual cannot act in the aforementioned roles unless the disqualification is revoked. The Act also provides mechanisms for reconsideration of the disqualification decision and includes provisions for the publication of such decisions as Notifiable Instruments in the Federal Register of Legislation. Notably, the Act includes specific penalties for disqualified individuals who continue to act in prohibited roles, including potential imprisonment.

Key Provisions

The key operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to this notice include subsection 126A(2) and subsection 126A(6). Under subsection 126A(2), the Commissioner of Taxation is empowered to disqualify a person from participating in the superannuation industry if they believe the person has contravened the Act in a manner that warrants disqualification. The notice, as per subsection 126A(6), must be served on the disqualified person, informing them of the decision and the effective date of the disqualification. In this case, Tony Barhoum has been disqualified under subsection 126A(2) by Emma Rosenzweig, a delegate of the Commissioner of Taxation. The Act imposes several obligations and requirements on the parties it governs. For Tony Barhoum, the disqualification means he is prohibited from acting as a trustee, investment manager, or custodian of a superannuation entity, or being a responsible officer or a body corporate that fulfils these roles. This prohibition is intended to protect the interests of superannuation fund members by ensuring that only suitable individuals manage these funds. The obligations extend to the Commissioner of Taxation, who must provide clear and formal notice of the disqualification to the affected person, ensuring that the process is transparent and the individual is fully aware of the consequences of their actions. The Superannuation Industry (Supervision) Act 1993 also outlines specific offences and penalties for breaches of the disqualification order. Under section 126K, it is an offence for a disqualified person who is aware of their disqualification status to act in any capacity related to the management of a superannuation entity. The maximum penalty for this offence is two years imprisonment. This stringent penalty reflects the seriousness of the Act in enforcing compliance and protecting the superannuation industry from unfit individuals. Additionally, subsection 126A(5) provides that the disqualification may be revoked by the Commissioner either on their own initiative or in response to a written application from the disqualified person, offering a potential path for reinstatement under certain conditions. For Tony Barhoum, the notice of disqualification also includes provisions for recourse. Section 344 of the SISA allows him to request the Commissioner to reconsider the decision if he is dissatisfied with it. This request must be made in writing within 21 days of receiving the notice and should include the reasons why he believes the decision is incorrect. This mechanism ensures that the process is fair and provides an opportunity for the affected person to challenge the decision if they believe it was made in error or is unjust.