Notice of Refusal to Revoke Disqualification – Darren Brown 31 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to address the need for regulation and oversight of the superannuation industry in Australia, ensuring the protection of superannuation funds and the interests of fund members. The Act was introduced to fill a legislative gap in the oversight of the superannuation industry, providing a framework for the regulation of superannuation entities and their officers. The enacting body for this legislation is the Parliament of Australia, with the policy objective of safeguarding the superannuation industry and maintaining public confidence in the system. In the context of the provided document, the Act is used to communicate the refusal to revoke the disqualification of Darren Brown as a fit and proper person to act as a trustee or responsible officer of a superannuation entity. The notice, issued by a delegate of the Commissioner of Taxation, adheres to the requirements of the Act and serves as a formal notification to Mr. Brown, who is informed that his disqualification will not be revoked due to his unfitness for the role. This notice also highlights the potential criminal consequences for a disqualified person who continues to act in a capacity that is prohibited under the Act, with the maximum penalty being two years imprisonment.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 applies to individuals and entities involved in the management and administration of superannuation entities within Australia, including trustees, responsible officers, and body corporates acting as trustees, investment managers, or custodians. The geographic and jurisdictional reach of the Act extends nationally, impacting all trustees and responsible officers operating in the superannuation industry across the Commonwealth of Australia. The Act provides that certain individuals disqualified from participating in the superannuation industry as trustees or responsible officers will have their disqualification publicly noted as a Notifiable Instrument, thereby alerting stakeholders of their ineligibility. The refusal to revoke such disqualification, as exemplified in the notice to Darren Brown, reinforces the stringent measures in place to ensure that only fit and proper persons manage superannuation funds. The Act includes penalties for disqualified persons who contravene the terms of their disqualification, with a potential maximum penalty of two years imprisonment. This legislative framework underscores the critical importance of integrity and propriety in the management of superannuation entities within Australia.

Key Provisions

The main operative sections of the document pertain to subsections 126A(5) and 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA). Subsection 126A(5) allows for the disqualification of an individual deemed unfit to be a trustee or responsible officer of a superannuation entity, while subsection 126A(6) mandates the issuance of a notice if a refusal to revoke such a disqualification is made. This notice must be issued by a delegate of the Commissioner of Taxation, as seen in the document, where Emma Rosenzweig, acting on behalf of the Commissioner, informs Darren Brown of the refusal to revoke his disqualification. The obligations and requirements imposed by the Act on parties such as Darren Brown are multifaceted. Firstly, if disqualified under the SISA, the individual must refrain from acting or being appointed as a trustee, investment manager, or custodian of a superannuation entity, or as a responsible officer of a body corporate that is a trustee, investment manager, or custodian of such an entity. The document explicitly states that Darren Brown is not a fit and proper person to hold these roles due to his disqualification. Additionally, under section 126K of the SISA, it is an offence for a disqualified person to knowingly engage in any capacity as a trustee, investment manager, or custodian, or as a responsible officer of a body corporate in these capacities. The document also outlines the consequences of breaching the provisions of the SISA. Under section 126K, if Darren Brown, or any disqualified person, knowingly acts in a prohibited capacity, it constitutes an offence. The maximum penalty for such an offence is imprisonment for up to two years. Furthermore, the refusal to revoke disqualification notice, as required by subsection 126A(7), will be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and public notification of the disqualification status. This public notice serves both as a deterrent and a means of maintaining the integrity of the superannuation industry by clearly communicating the consequences of non-compliance.