Minister for Financial Services, Stephen Jones says consumers have waited long enough for two important protections – the CSLR and the FAR.
In a statement Jones says the Government is committed to finalising these two important and “long overdue” recommendations of the Hayne Royal Commission, noting that it has re-introduced a package of legislation to establish the Financial Accountability Regime and the Compensation Scheme of Last Resort (see: Reservations About CSLR and FAR Legislation).
Together, these Bills “…will make executives more accountable for the conduct of financial institutions, and provide an avenue of redress for victims of financial misconduct,” he says.
Jones states that at present there are around 2,000 cases on hold with AFCA, awaiting passage of the CSLR. In another 30 cases, compensation has been awarded, but can’t be paid until the Scheme has been established.
…if the Bills are not passed this month consumers will be waiting until 2024 to receive compensation…
He adds that if the CSLR Bills are not passed this month “… consumers will be waiting until 2024 to receive compensation.”
Jones notes that similarly, “…the longer the wait for the FAR goes on, the more uncertainty there will be amongst the financial industry about the obligations that will be imposed upon them.”
He says these measures will strengthen the financial system, adding they are “…supported by trusted consumer advocates such as Choice, and are a direct response to some of the revelations heard at the Hayne Royal Commission.”
“It’s time to get these things done,” he concludes.
