Notice of Disqualification - Mr Braden Schlager

Overview

The Superannuation Industry (Supervision) Act 1993 (SISA) was enacted to regulate the superannuation industry in Australia and protect the interests of superannuation fund members. It was introduced to address the need for oversight and regulation of the superannuation industry, including the actions of trustees, investment managers, and custodians. The SISA was enacted by the Parliament of Australia and aims to ensure that the superannuation industry operates in a fair, efficient, and transparent manner. The Act provides for the disqualification of individuals who have contravened its provisions, as demonstrated in the case of Mr. Braden Schlager, who has been disqualified from acting as a trustee, investment manager, or custodian of a superannuation entity due to multiple contraventions of the SISA. This disqualification order was made by a delegate of the Commissioner of Taxation, James O'Halloran, in accordance with the provisions of the SISA.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the administration of superannuation entities, including trustees, investment managers, custodians, and responsible officers of body corporates that manage superannuation funds. This act governs the conduct and transactions related to superannuation entities across the Commonwealth of Australia, ensuring compliance with financial regulations designed to protect the interests of superannuation fund members. The act’s jurisdiction extends nationally, impacting individuals and entities operating within Australia’s superannuation framework. The disqualification provision outlined in the act allows for the exclusion of individuals from participating in the management of superannuation funds if they are found to have contravened the act’s provisions. The application of the act can be further defined or extended through subordinate instruments, allowing for the incorporation of additional regulations or clarifications as necessary.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) provides for the disqualification of individuals and entities from performing certain roles within the superannuation industry. Under this Act, section 126A(6) allows a delegate of the Commissioner of Taxation to issue a notice of disqualification to an individual found to have contravened the provisions of the SISA. In this case, the delegate, James O'Halloran, has issued a notice to Mr. Braden Schlager, disqualifying him from acting as a trustee, investment manager or custodian of a superannuation entity, or as a responsible officer of a body corporate that performs these roles. The decision to disqualify Mr. Schlager was made under section 126A(1) of the SISA due to multiple contraventions of the Act, which were deemed serious enough to warrant such action. The disqualification order issued to Mr. Schlager is effective from the date of the notice, 17 December 2015. This order prevents Mr. Schlager from holding or acting in any capacity that involves the management or oversight of superannuation funds. The notice also informs Mr. Schlager of the potential for the disqualification to be revoked, either on the initiative of the Commissioner or upon written application by Mr. Schlager, as per subsection 126A(5) of the SISA. Additionally, Mr. Schlager has the right to request a reconsideration of the decision by the Commissioner within 21 days of receiving the notice, as stipulated in section 344 of the SISA. Should Mr. Schlager choose to contest the disqualification, he must submit a written request to the Commissioner, providing reasons for his dissatisfaction with the decision. Failure to comply with the terms of the disqualification notice can lead to various consequences, including the potential for further legal action. The notice of disqualification will also be published in the Gazette as per subsection 126A(7) of the SISA, ensuring public transparency regarding the decision.