Notice of Disqualification – Lambertus Schraven– 21 February 2025

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to address the need for effective supervision and regulation of the superannuation industry in Australia. This legislation was introduced by the Australian Parliament to ensure that superannuation funds are managed properly and in the best interests of the members. The overarching policy objective of the SISA is to protect the interests of superannuation fund members by promoting the responsible management and oversight of superannuation funds. The Act provides mechanisms for the regulation of trustees, investment managers, and custodians of superannuation entities to prevent misconduct and ensure the financial stability of the superannuation system. Lambertus Schraven has been disqualified under subsection 126A(1) of the SISA due to contraventions that were deemed serious enough to warrant this action. The disqualification took immediate effect upon issuance of the notice. This notice, issued by a delegate of the Commissioner of Taxation, is in accordance with the legislative requirements of the SISA, and details of the disqualification will be published in the Federal Register of Legislation.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) is a Commonwealth statute that governs the administration, operation, and regulation of superannuation funds in Australia. The Act applies to a broad range of entities and individuals involved in the superannuation industry, including trustees, investment managers, custodians, and responsible officers of superannuation entities. It covers various aspects of conduct and transactions within the superannuation industry, ensuring compliance with standards designed to protect superannuation fund members. The geographic reach of the Act is nationwide, as it is a Commonwealth statute, and it applies to all superannuation entities operating within Australia. The Act includes specific exclusions and exemptions, but these are not detailed in the provided notice; generally, the Act does not apply to self-managed superannuation funds (SMSFs) unless they are involved in certain types of transactions or conduct that fall under the Act’s purview. The Act also extends its application through subordinate instruments, such as regulations and rules, which provide additional detail and specificity to the broad provisions of the Act. These instruments help in implementing and enforcing the provisions of the Act effectively across the industry.

Key Provisions

The primary operative section referenced here is subsection 126A(6) of the Superannuation Industry (Supervision) Act 1993 (SISA). This section mandates that the Commissioner of Taxation, through a delegate such as Emma Rosenzweig, must provide Lambertus Schraven with a notice of disqualification. The disqualification arises from a determination under subsection 126A(1) of the SISA, indicating that Schraven has contravened the Act in a manner severe enough to warrant disqualification. The notice informs Schraven that the disqualification takes effect immediately on the date it is issued. The obligations imposed by the Act on Schraven include ceasing any activities that involve being or acting as a trustee, investment manager, custodian, responsible officer, or body corporate of a superannuation entity, as outlined in section 126K of the SISA. This obligation is critical to prevent Schraven from continuing to participate in the management or administration of superannuation funds, which could potentially expose those funds to further risk or mismanagement. Schraven is also required to refrain from engaging in any conduct that would imply or suggest that he is authorised to perform any of the prohibited roles within a superannuation entity. Failure to comply with the disqualification provisions set out in section 126K of the SISA constitutes an offence. Schraven, knowing he is disqualified, if he acts as a trustee, investment manager, custodian, responsible officer, or body corporate of a superannuation entity, commits an offence. The maximum penalty for this offence is a two-year jail term, as stipulated in the SISA. Additionally, subsection 126A(5) of the Act allows for the disqualification to be revoked, either at the initiative of the Commissioner or upon a written application by Schraven himself. This offers a potential avenue for Schraven to seek reinstatement under certain conditions. If Schraven is affected by this decision and believes it to be incorrect, he has the right to request the Commissioner to reconsider the decision within 21 days of receiving the notice. This request must be made in writing and should outline the reasons Schraven thinks the decision is wrong. This provision is detailed in section 344 of the SISA, ensuring that there is a formal process for reviewing the disqualification decision and potentially rectifying any perceived errors or injustices.