Notice of Variation of Disqualification – Timothy Daly - 16 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to establish a regulatory framework for the supervision of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members. This Act was introduced to address the need for stringent oversight and regulation of entities managing superannuation funds to ensure compliance with legislative requirements and the safeguarding of members' interests. The Act was passed by the Parliament of Australia, reflecting a policy objective to maintain the integrity and stability of the superannuation system. This legislative instrument notifies Timothy Daly of his disqualification under the Act due to the corporate trustee's contraventions of the SISA, highlighting the seriousness with which the law treats breaches of its provisions.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and supervision of superannuation entities, including trustees, investment managers, custodians, and responsible officers of corporate trustees. The Act's jurisdiction is at the Commonwealth level, ensuring uniform regulation across Australia. The Act’s scope extends to any person who contravenes the legislation through their role as a responsible officer, and the disqualification provisions apply to those who have engaged in multiple contraventions that justify such action. Notably, the Act includes mechanisms for the revocation of disqualification and provides avenues for appeal, ensuring that affected parties have the opportunity to contest the decision. Additionally, the Act stipulates that details of any disqualifications are to be published as Notifiable Instruments in the Federal Register of Legislation, ensuring transparency and accessibility of this information.

Key Provisions

The main operative sections of the Superannuation Industry (Supervision) Act 1993 (SISA) relevant to this case are subsection 126A(2), which allows for the disqualification of a responsible officer if there have been contraventions of the SISA by the corporate trustee they serve, and subsection 126A(6), which requires that a notice of disqualification be provided to the affected individual. In this instance, subsection 126A(2) has been used to disqualify Timothy Daly, as the delegate is satisfied that the corporate trustee has contravened the SISA and that Timothy was a responsible officer at the time. The notice of disqualification is provided under subsection 126A(6). Additionally, subsection 126A(7) mandates that the details of this disqualification be published as a Notifiable Instrument in the Federal Register of Legislation. The obligations imposed by the SISA on parties such as Timothy Daly include ensuring compliance with the Act's requirements. For Timothy, this means that he must refrain from acting as a trustee, investment manager, or custodian of a superannuation entity, as well as from being a responsible officer of a body corporate that serves in these capacities. This obligation is reinforced under section 126K of the SISA, which stipulates that it is an offence for a disqualified person to act in any of these roles if they are aware of their disqualification. Should Timothy Daly breach these obligations by acting in any of the prohibited roles, he faces serious consequences. Section 126K of the SISA establishes that such conduct is an offence, with a maximum penalty of two years imprisonment. This underscores the seriousness of the disqualification and the need for strict adherence to the Act's provisions. Furthermore, subsection 126A(5) of the SISA allows for the disqualification to be revoked either on the initiative of the delegate or upon a written application by Timothy Daly. This provides a potential pathway for Timothy to seek reinstatement, contingent upon meeting any conditions set by the delegate. If Timothy is unsatisfied with the disqualification decision, he has the right to request a reconsideration under section 344 of the SISA. This request must be made in writing within 21 days of receiving the notice and should include the reasons for believing the decision is incorrect. This provision ensures that there is a formal process for challenging decisions that may have significant implications for an individual's professional capacity within the superannuation industry.