Advice sector should not fund CSLR: Synchron
The financial advice industry should not have to pay toward funding the upcoming compensation scheme of last resort (CSLR), Synchron believes.
Synchron director, Don Trapnell, said 1.4% of complaints to the Australian Financial Complaints Authority (AFCA) were related to advice, and 0.03% were not settled, but the advice sector was expected to fund the lion’s share of the CSLR.
“On these numbers, it's clear that financial institutions that operate managed investment schemes should pick up the tab," Trapnell said.
"The advice community should not be required to pay any CSLR levy whatsoever."
Trapnell noted the CSLR proposal paper required the advice sector to pay 76% of the estimated levies for the scheme.
"On the flip side, the managed investment scheme providers, which have wreaked absolute havoc on consumers, will not be required to pay anything at all. It's absolutely disgraceful,” he said.
"The Government must stop making scapegoats out of the advice community, which is clearly not responsible for product failures and not responsible for the vast majority of AFCA complaints.
"A CSLR levy should instead be imposed on all new products and investment schemes."
Recommended for you
A global investment manager with more than $676 billion in AUM has announced a $345 million debt investment into Oaktree Capital-backed AZ NGA.
Three commentators unpack how firms are increasingly hiring client-facing investment specialists to support financial advisers in understanding the complexities of alternative investment funds.
Five male names are shared by over 10 per cent of the financial advice industry, according to CoreData, while a female name does not appear until number 43.
With the results for the first half of FY25 now in, Money Management takes a look at which of the three ASX-listed investment platforms has seen the highest FUA growth.
