Notice of Disqualification – Chris Reyes - 26 May 2026

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 funds and the interests of fund members. The Act was passed by the Commonwealth Parliament with the policy objective of maintaining the integrity, efficiency, and accountability of the superannuation industry. As a notifiable instrument under this Act, the notice of disqualification issued to Chris Reyes on 26 May 2026 by Ben Kelly, a delegate of the Commissioner of Taxation, serves to disqualify Reyes from acting as a trustee, investment manager, or custodian of a superannuation entity. This action is taken to safeguard the superannuation industry and the members whose funds are entrusted to these roles. The disqualification is an immediate consequence of the notice and is also subject to publication as a Notifiable Instrument in the Federal Register of Legislation. Additionally, any disqualified person who knowingly acts in the prohibited capacities faces potential criminal penalties, including up to two years in jail. The Act also provides pathways for reconsideration and potential revocation of such disqualifications.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals who are involved in the management or oversight of superannuation entities. Specifically, it targets those who act as trustees, investment managers, or custodians of superannuation funds, as well as responsible officers or corporate bodies fulfilling these roles. The Act operates within the Commonwealth jurisdiction, meaning it has national reach across Australia. The notice of disqualification, such as the one issued to Chris Reyes, signifies that the individual is prohibited from engaging in certain supervisory roles within the superannuation industry, effective immediately upon the notice's issuance. The Act includes provisions for the publication of such disqualifications, ensuring transparency and public awareness. There are also severe penalties, including up to two years in jail, for any disqualified person who continues to act in a prohibited capacity knowingly. The Act allows for the possibility of disqualification revocation either on the initiative of the authorities or upon a written application by the disqualified individual. Furthermore, those affected by the disqualification have the right to request a reconsideration of the decision within 21 days, providing an opportunity to challenge the decision on specified grounds.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) is a comprehensive piece of legislation that governs the supervision of the superannuation industry in Australia. Section 126A(1) and (6) of the SISA provides the authority for the disqualification of individuals from performing certain roles within the superannuation sector. When a disqualification is imposed, it is effective immediately upon the issuance of the notice, as per subsection 126A(6). The notice to the affected individual, in this case, Chris Reyes, includes specific details such as the reason for disqualification and the effective date, as demonstrated in the notice dated 26 May 2026, issued by Ben Kelly, a delegate of the Commissioner of Taxation. The Act imposes significant obligations on individuals who are disqualified. Under section 126K of the SISA, it is a strict requirement that a disqualified person refrains from acting as a trustee, investment manager, or custodian of a superannuation entity, or being a responsible officer or body corporate in such capacities. This prohibition is crucial to maintain the integrity and proper management of superannuation funds. The obligations extend to ensuring that disqualified individuals do not engage in any activities that could potentially affect the administration or governance of superannuation entities. Failure to comply with the disqualification can lead to severe consequences. Section 126K also stipulates that it is an offence for a disqualified person to be, or act as, a trustee, investment manager, or custodian of a superannuation entity if they are aware of their disqualification status. The maximum penalty for committing this offence is two years imprisonment, reflecting the seriousness with which the law treats breaches of these provisions. This legal deterrent is designed to uphold the standards of the superannuation industry and protect the interests of superannuation fund members. Additionally, the SISA provides mechanisms for the possible revocation of the disqualification. According to subsection 126A(5), the disqualification may be revoked either on the initiative of the authority or upon a written application by the disqualified individual. This offers a pathway for review and potential reinstatement of the individual's eligibility to perform certain roles within the superannuation industry, subject to meeting the criteria set by the authority. Furthermore, section 344 of the SISA allows for an appeal against the disqualification decision. If an individual is dissatisfied with the decision, they can request the Commissioner to reconsider the decision in writing within 21 days of receiving notice of the disqualification. This provision ensures that there is a formal process for challenging the decision and presenting reasons for reconsideration.