Notice of Disqualification - Zia Younan - 9 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for regulation and oversight within Australia's superannuation industry, ensuring that trustees, investment managers, and custodians of superannuation entities operate with integrity and in the best interests of superannuation fund members. The SISA was introduced by the Australian Parliament to provide a robust framework that protects the superannuation savings of Australians, which are critical for retirement income. The policy objective of the Act is to maintain high standards of conduct, accountability, and governance within the superannuation industry, thereby safeguarding the financial interests of superannuation fund members. In the context of the provided notice of disqualification, the Act empowers the Commissioner of Taxation to disqualify individuals who have acted as responsible officers of a corporate trustee and have contravened the Act, particularly when the seriousness of the contraventions warrants such action. This enforcement mechanism is crucial in upholding the integrity of the superannuation industry and ensuring compliance with legislative standards. The notice to Zia Younan, detailing his disqualification, exemplifies the application of the Act's provisions to address non-compliance and maintain the trust and confidence of superannuation fund members in the industry.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the administration and management of superannuation entities in Australia, including trustees, investment managers, custodians, and responsible officers. The Act has a national reach, operating across the Commonwealth, and is applicable to all states and territories within Australia. Its primary purpose is to ensure the proper management of superannuation funds, safeguarding the interests of superannuation members. The Act includes provisions for disqualifying individuals who have acted in a manner that breaches the legislation, as evidenced by the notice of disqualification for ZIA Younan under subsection 126A(2) of the Act. This disqualification stems from a contravention of the Act by the corporate trustee of a superannuation entity, where Mr. Younan was a responsible officer at the time of the breaches. The disqualification prevents Mr. Younan from acting as a trustee, investment manager, custodian, or responsible officer of any superannuation entity, with the specific details of this disqualification to be published as a Notifiable Instrument in the Federal Register of Legislation. Furthermore, being a disqualified person under the Act constitutes an offence, with potential penalties including up to two years imprisonment, and the disqualification can be revoked either on the initiative of the Commissioner or through a written application by the disqualified person.

Key Provisions

The primary operative sections in this legislation are subsection 126A(2), subsection 126A(6) and section 126K of the Superannuation Industry (Supervision) Act 1993 (SISA). Subsection 126A(2) allows for the disqualification of an individual from acting as a responsible officer of a corporate trustee of a superannuation entity if they are satisfied that the individual has contravened the SISA and the seriousness of the contraventions provides grounds for disqualification. Subsection 126A(6) provides the mechanism for notifying the disqualified individual of their disqualification, which is the content of this document. Section 126K imposes an offence on a disqualified person who knowingly acts as a trustee, investment manager or custodian of a superannuation entity, with a maximum penalty of two years imprisonment. The Act imposes several obligations on the parties it governs. It requires the Commissioner of Taxation, or a delegate, to notify the disqualified individual of their disqualification in writing (subsection 126A(6)). The Act also requires the disqualified individual to refrain from acting as a responsible officer of a corporate trustee of a superannuation entity (subsection 126A(2)). Furthermore, section 126K imposes an obligation on disqualified individuals not to act as a trustee, investment manager or custodian of a superannuation entity, or to be responsible for a body corporate that is a trustee, investment manager or custodian of a superannuation entity. Failure to comply with the obligations and requirements of the Act may result in civil or criminal consequences. Section 126K of the SISA imposes a criminal offence on a disqualified person who knowingly acts as a trustee, investment manager or custodian of a superannuation entity, or to be responsible for a body corporate that is a trustee, investment manager or custodian of a superannuation entity, with a maximum penalty of two years imprisonment. Additionally, under subsection 126A(5) of the SISA, the disqualification may be revoked on the initiative of the Commissioner or on the written application of the disqualified individual. If the disqualified individual is not satisfied with the decision, they may request the Commissioner to reconsider the decision within 21 days of receiving notice of the decision (section 344).