The introduction of the Compensation Scheme of Last Resort and the Financial Accountability Regime Legislation into Parliament has been welcomed by the FSC, which says this reflects the Government’s focus on finalising the remaining pieces of the Banking Royal Commission.
CEO of the FSC Blake Briggs says the Assistant Treasurer has got the balance right with the CSLR scheme “…which will provide consumers with a safety net of up to $150,000 for eligible unpaid Australian Financial Complaints Authority determinations.”
He says the CSLR will establish an industry-funded scheme to protect consumers who have incurred losses “…while not excessively burdening customers and well-run organisations that have done nothing wrong, with the costs of the scheme.”
Briggs adds that the FAR will bring “…additional accountability measures for senior executives in prudentially regulated sectors, including superannuation, life insurance and banking and provides for penalties on those institutions.”
He also notes the aim is for the CSLR “…to be genuinely last resort through effective enforcement of existing laws to minimise the potential cost of the scheme to consumers and industry.”
