Minister for Financial Services Stephen Jones has announced the Compensation Scheme of Last Resort is now beginning to process claims for compensation payments from eligible consumers.
The announcement comes after the FAAA had expressed “deep concern and disappointment” in March about the adviser costs in the CSLR’s estimates, and had called on the Government for the retrospective impact of the CSLR on financial advisers to be urgently resolved (see: Urgent Call to Resolve Adviser Costs).
The statement from Jones says the CSLR provides compensation of up to $150,000 “…to eligible consumers who have an unpaid determination from the Australian Financial Complaints Authority relating to the provision of personal financial advice, credit intermediation, securities dealing and credit provision.”
It says the CSLR was first proposed by the 2017 Ramsay Review, supported by the Banking Royal Commission.
“The government is delivering on its election commitment to establish the CSLR, finalising one of the last outstanding recommendations of the Royal Commission.”
Jones says the CSLR will “…strengthen consumer trust and confidence in Australia’s financial system,” adding it will “…give victims an avenue for redress when things go wrong.”
