Notice of Refusal to Revoke Disqualification – Cy Steer - 21 May 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted by the Australian Parliament to ensure the proper management and supervision of superannuation funds. This legislation was introduced to address issues related to the administration and oversight of superannuation entities, ensuring that trustees and responsible officers are fit and proper persons to handle such responsibilities. The policy objective of the Act is to protect the interests of superannuation fund members by imposing standards of conduct and imposing penalties for non-compliance. In this context, the Act provides mechanisms for disqualifying individuals who are deemed unfit to manage superannuation funds and includes provisions for the revocation or refusal to revoke such disqualifications. The notice referenced here is an example of the enforcement of these provisions, where an individual's disqualification from acting as a trustee or responsible officer of a superannuation entity is refused based on the determination of their fitness.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the management and oversight of superannuation entities. It specifically pertains to those acting as trustees, investment managers, or custodians of superannuation entities, as well as responsible officers of bodies corporate that hold such roles. The Act operates on a national level within Australia, covering all states and territories. It mandates that only fit and proper persons can be appointed to these critical positions within the superannuation industry, ensuring that superannuation funds are managed with integrity and in the best interest of the members. The Act's jurisdiction is extensive, and it provides for disqualifying individuals who are deemed unfit, with penalties including up to two years in jail for those who knowingly continue in such roles post-disqualification. The Act also allows for the publication of notices regarding disqualifications, ensuring transparency and accountability within the industry. Subordinate instruments may further define the criteria for determining fitness and the processes for disqualification and revocation.

Key Provisions

The main operative sections of the notice of refusal to revoke disqualification under the Superannuation Industry (Supervision) Act 1993 (SISA) include subsection 126A(6) (1), which mandates the Commissioner of Taxation or their delegate to inform the disqualified person of the refusal to revoke their disqualification, and subsection 126A(7) (2), which requires the details of this refusal to be published as a Notifiable Instrument in the Federal Register of Legislation. Section 126K (3) sets out the specific offence of a disqualified person knowingly acting as a trustee, investment manager, custodian, or responsible officer of a superannuation entity, and the associated penalties. Under these provisions, the obligations imposed on the disqualified person, in this case Cy Steer, are primarily to adhere to the determination of the Commissioner of Taxation or their delegate regarding their fitness to hold any role within a superannuation entity. The notice clearly states that Cy Steer has been deemed not a fit and proper person to be a trustee or responsible officer of a superannuation entity under the SISA. This refusal notice ensures that Cy Steer is aware of the ongoing disqualification and the reasons behind it, reinforcing the importance of compliance with the provisions of the Act. The legislation also sets out the potential consequences for breach of the disqualification order. Specifically, under section 126K (4), it is an offence for a disqualified person to act in any capacity as a trustee, investment manager, custodian, or responsible officer of a superannuation entity while knowing they are disqualified. The maximum penalty for this offence is two years imprisonment (5), emphasising the seriousness with which the law regards the proper supervision of superannuation entities and the protection of superannuation funds. These provisions and penalties are designed to maintain the integrity and proper management of superannuation funds in Australia.