Notice of Disqualification – Zoran Aleksovski - 18 October 2024

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for robust supervision and regulation of the superannuation industry in Australia, ensuring the protection of superannuation fund members. The SISA was introduced by the Australian Parliament to provide a comprehensive regulatory framework that maintains the integrity and proper functioning of the superannuation industry. The overarching policy objective of the Act is to safeguard the financial interests of superannuation fund members by ensuring that trustees and responsible officers adhere to stringent standards of conduct and compliance. The Act empowers the Commissioner of Taxation to disqualify individuals who are deemed unfit to manage superannuation entities, thereby protecting the industry from malfeasance and ensuring the financial security of those who rely on superannuation funds for their retirement.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to individuals and corporate trustees responsible for the management of superannuation entities within Australia. This Act extends to all trustees, responsible officers, and relevant entities engaged in the administration of superannuation funds, ensuring compliance with legislative standards designed to protect the interests of superannuation fund members. The jurisdiction of this Act is national, as it is a Commonwealth Act, thereby applying across all states and territories in Australia. The Act provides a framework for disqualifying individuals who are deemed unfit to hold positions of responsibility within the superannuation industry, based on breaches of the Act or other grounds that render them unsuitable. Notably, the Act allows for the disqualification to be imposed and potentially revoked by the Commissioner of Taxation or a delegate, such as in the case of Zoran Aleksovski. Any disqualified person who continues to act in a capacity they are prohibited from may face criminal penalties, including up to two years imprisonment. The Act also mandates that details of such disqualifications be published as Notifiable Instruments in the Federal Register of Legislation, ensuring transparency and public awareness of these decisions.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) provides mechanisms for disqualifying individuals from acting as trustees or responsible officers of superannuation entities. In the present case, under subsection 126A(6) of the SISA, Zoran Aleksovski has been disqualified by Emma Rosenzweig, a delegate of the Commissioner of Taxation. This disqualification arises because the corporate trustee of one or more superannuation entities has contravened the SISA on multiple occasions, with Aleksovski acting as a responsible officer at the time of these contraventions. The seriousness of the contraventions warrants his disqualification. Additionally, Rosenzweig is satisfied that Aleksovski is not a fit and proper person to hold such positions within the superannuation industry. Under the SISA, several obligations and requirements are placed on individuals like Aleksovski who are disqualified. Firstly, they are prohibited from acting as a trustee, investment manager, or custodian of a superannuation entity, or serving as a responsible officer for a body corporate that holds these roles. This prohibition is clearly outlined under section 126K of the SISA, which stipulates that knowingly acting in these capacities while being disqualified is an offence. Moreover, subsection 126A(5) of the SISA provides that the disqualification can be revoked either on the initiative of the Commissioner or upon a written application by the disqualified individual. The penalties for breaching the provisions of the SISA are significant. Section 126K outlines that anyone who knowingly acts as a trustee, investment manager, custodian, or responsible officer while disqualified faces potential criminal penalties. The maximum penalty for committing this offence is two years imprisonment. This underscores the seriousness with which the Act treats such contraventions. Furthermore, section 344 of the SISA allows any individual affected by the disqualification decision to request a reconsideration by the Commissioner if they believe the decision is wrong. This request must be made in writing within 21 days of receiving notice of the decision, and it must detail the reasons for dissatisfaction with the decision.