Notice of Disqualification – Jordan-Aaron Fraser - 15 July 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for stringent regulation and oversight of the superannuation industry in Australia, aiming to protect the interests of superannuation fund members. The Act was introduced by the Australian Parliament, with the overarching policy objective of ensuring the integrity, efficiency, and stability of the superannuation system by imposing regulatory requirements on trustees and responsible officers of superannuation entities. The SISA aims to prevent misconduct and ensure that only fit and proper individuals are entrusted with managing superannuation funds. The act includes provisions for disqualifying individuals from acting as trustees or responsible officers if they are found to have contravened the Act or are deemed unfit for the role, as demonstrated in the disqualification notice issued to Jordan-Aaron Fraser under subsection 126A(6) of the SISA.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management and oversight of superannuation entities, such as trustees, investment managers, and custodians. The Act imposes stringent requirements on these parties to ensure the proper management of superannuation funds, and any contraventions can lead to severe consequences, including disqualification. The jurisdictional reach of the Act is Commonwealth, applying across Australia, and it extends to individuals who have contravened its provisions or are deemed unfit to manage superannuation entities. The disqualification, as noted in the notice, is immediate and enforceable, with details published in the Federal Register of Legislation. Furthermore, the Act provides for potential revocation of disqualification under specific conditions and allows for reconsideration of the decision by the Commissioner within 21 days of receiving the notice. The Act also stipulates criminal penalties for those who continue to act in their disqualified capacity, reinforcing the seriousness of its provisions.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) contains several key provisions that govern the disqualification of individuals from certain roles within superannuation entities. Section 126A(2) of the Act provides that the Commissioner of Taxation can disqualify a person if they are satisfied that the person has contravened the Act and the seriousness of the contraventions warrants such a disqualification. Section 126A(6) requires the Commissioner to notify the disqualified person in writing, detailing the grounds for the disqualification, as seen in the notice to Jordan-Aaron Fraser dated 15 July 2025. This notice informs Fraser that he has been disqualified from being a trustee or a responsible officer of a body corporate that is a trustee, of a superannuation entity. Under the Act, the disqualification takes immediate effect on the date of the notice. Furthermore, subsection 126A(7) mandates that the details of the disqualification notice be published as a Notifiable Instrument in the Federal Register of Legislation, ensuring transparency and public awareness of such actions. The Act also places specific obligations on the disqualified individual. For example, section 126K stipulates that it is an offence for a disqualified person who knows of their disqualification status to act as a trustee, investment manager, or custodian of a superannuation entity, or to be a responsible officer of a body corporate that holds such positions. The maximum penalty for this offence is two years imprisonment. Additionally, the Act provides mechanisms for potential revocation of the disqualification. Subsection 126A(5) of the SISA allows for the revocation of the disqualification either on the initiative of the Commissioner or upon a written application by the disqualified person. This offers a pathway for Fraser to potentially reinstate his eligibility for roles within superannuation entities if he successfully demonstrates that he meets the required standards. Should Fraser be dissatisfied with the disqualification decision, section 344 of the SISA provides a recourse. It allows him to request the Commissioner to reconsider the decision within 21 days of receiving the notice, provided that the request is made in writing and includes the reasons he believes the decision is incorrect.