Notice of Disqualification – Tanya Schraven– 21 February 2025

Overview

The Superannuation Industry (Supervision) Act 1993 was enacted to establish a framework for the supervision of superannuation entities and to regulate the activities of trustees, investment managers, and custodians of superannuation funds in Australia. This legislation was introduced to address the need for a robust regulatory framework to protect the interests of superannuation fund members, particularly in light of the significant growth and complexity of the superannuation industry. The Act aims to ensure that superannuation entities operate in a manner that is fair, transparent, and in the best interests of members. The Superannuation Industry (Supervision) Act 1993 is administered by the Australian Taxation Office (ATO), which is tasked with enforcing the provisions of the Act and ensuring compliance by relevant entities. The policy objective of the Act is to maintain and enhance the integrity and stability of the superannuation system, thereby safeguarding the retirement savings of Australians.

Scope and Application

The Superannuation Industry (Supervision) Act 1993 (SISA) applies to individuals and entities involved in the management of superannuation funds, including trustees, investment managers, and custodians. The Act covers conduct and transactions that pertain to superannuation entities, and its jurisdictional reach is national, as it is a Commonwealth Act. The Act allows for the disqualification of individuals who have contravened its provisions, with the disqualification becoming effective on the day it is made. This process includes the publication of details of the disqualification notice in the Federal Register of Legislation. The Act also includes provisions for the revocation of disqualifications and the ability for affected parties to request a reconsideration of the decision within 21 days. Furthermore, the Act provides for criminal penalties for disqualified persons who continue to act in roles for which they have been disqualified, with a maximum penalty of two years imprisonment. Any subordinate instruments or regulations would need to be examined to understand the full scope of the Act’s application, though the primary legislation sets out the key areas of application and the consequences of non-compliance.

Key Provisions

The Superannuation Industry (Supervision) Act 1993 (SISA) provides specific provisions concerning the disqualification of individuals from participating in the management of superannuation entities. Section 126A(1) and (6) of the Act empower a delegate of the Commissioner of Taxation to disqualify a person who has contravened the Act, provided the contraventions are serious enough to warrant such a measure. This disqualification can occur without the need for a court proceeding. Tanya Schraven has been formally notified of her disqualification under these provisions, effective from the date of the notice. The Act imposes clear obligations on individuals such as Tanya Schraven, who have been disqualified. Under section 126K, it is explicitly stated that a disqualified person, who is aware of their disqualification status, must not act as a trustee, investment manager, or custodian of a superannuation entity, nor can they serve as a responsible officer or be associated with a body corporate that holds such roles. Failure to adhere to these obligations can result in serious legal consequences. The SISA delineates specific penalties for breaches of the disqualification provisions. According to section 126K, knowingly acting in contravention of the disqualification is an offence. The maximum penalty for this offence is imprisonment for up to two years. This reflects the seriousness with which the Act treats such breaches, ensuring that individuals who are disqualified do not continue to manage superannuation entities. In addition to the disqualification and associated penalties, the SISA provides mechanisms for the review and potential revocation of disqualifications. Under subsection 126A(5), the disqualification can be revoked either on the initiative of the Commissioner or upon a written application by the disqualified person. This offers a pathway for individuals to seek relief if they believe the disqualification was unjust or if their circumstances have changed. Furthermore, section 344 allows for a reconsideration of the decision by the Commissioner if the disqualified individual submits a written request within 21 days of receiving the disqualification notice, outlining the reasons why they believe the decision is incorrect.