The Compensation Scheme of Last Resort (CSLR) is to be reviewed. The decision was announced by Treasury following news the sector will have to pay $78m to compensate consumers in 2025–26, largely as a result of the liquidation of United Global Capital and Dixon Advisory.
Ensuring the scheme is sustainably funded will be an important focus of the review, says outgoing Assistant Treasurer and Minister for Financial Services Stephen Jones MP. Jones will not be standing for re-election.
“While industry has provided broad support for the CSLR, it’s important there is confidence the scheme is meeting its objective in a way that is sustainable for both companies and consumers,” says Jones.
“We’ll continue to do everything we can to safeguard consumers and ensure all Australians have access to affordable and quality financial advice.”
CSLR ensures consumers can access some compensation in circumstances of genuine last resort where misconduct has occurred in the provision of personal financial advice, credit intermediation, securities dealing and credit provision.
