CSLR advice levy skyrockets in FY26
The levy payable by financial advisers for the Compensation Scheme of Last Resort (CSLR) has more than tripled for FY26 as the government launches a formal review.
Initial estimates put the FY26 levy at $77.9 million and $70.1 million of this – some 89 per cent – is allocated to the financial advice sector.
This was attributed to claims regarding Dixon Advisory and United Global Capital.
The figure compares to $18.5 million charged to the advice sector in the previous financial year out of a total of $24.1 million.
ASIC is allowed to authorise a sub-sector cap of $20 million and the amount above this will require funding via a special levy to be determined by the Minister for Financial Services.
David Berry, chief executive of CSLR, said: “In line with our administrative function, we have, with the assistance of external actuaries, calculated the initial levy estimate for FY26. As previously foreshadowed in October 2024, the estimate exceeds the $20m sub-sector cap for personal advice.
“The key contributors driving the expected number of claims are attributed to Dixon Advisory & Superannuation Services and United Global Capital.”
In light of the spiralling costs, the federal government has directed Treasury to undertake a review of CSLR to ensure it remains sustainable in the future.
Minister for financial services, Stephen Jones, said: “The CSLR ensures victims 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.
“While industry has provided broad support for the CSLR, it’s important that there is confidence that the scheme is meeting its objective in a way that is sustainable for both companies and consumers.”
AUTHOR
Laura Dew
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