Jones urges passing of CSLR bill this month

Stephen Jones CSLR financial accountability regime

20 March 2023
| By Laura Dew |
image
image
expand image

Stephen Jones has called on the Government to act quickly on the Compensation Scheme of Last Resort (CSLR) and Financial Accountability Regime (FAR) as it returns to Parliament this week. 

Jones, Minister for Financial Services and Assistant Treasurer, said the two measures would strengthen Australia’s financial system. 

There were around 2,000 cases on hold with the Australian Financial Complaints Authority (AFCA), he said, which were awaiting passage of the CSLR while others were still waiting for redress to be paid. 

The CSLR bill was introduced earlier this month to the House of Representatives under the Treasury Laws Amendment (Financial Services Compensation Scheme of Last Resort) Bill 2023. It had previously been part of the Credit Act but was removed at the end of 2022. 

“These Bills will make executives more accountable for the conduct of financial institutions, and provide an avenue of redress for victims of financial misconduct. These are important protections for consumers and they have waited long enough.

“If the CSLR Bills are not passed this month, consumers will be waiting until 2024 to receive compensation.

“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.”

 

Read more about:

AUTHOR

Submitted by Tired Adviser on Tue, 2023-03-21 08:58

So just another nail in the coffin of Advisers, how about the Fund Managers cough up the 250 million dollars for the failed funds, It their colleagues who managed those failed funds. Consumers are in the plum seat Complain get a payment irrelevant of the reason. and the Fund Managers Slip Cheques to the Major parties and pesto move the problem to the most liability and lest able to afford it. Yep that right the adviser.

Submitted by Duke Nukem on Tue, 2023-03-21 08:58

This is bad legislation. More cost for us, no risk for crooks and zero oversight from ASIC. Purely reactive and we wind up paying for it (again). Jones, you have no idea what you are doing and should vacate the portfolio for someone who does. BTW, Duke is still confused by how this is holding up compensation to clients. Isn't that what indemnity insurance is all about? No in the even the insurance did not exist, where was ASIC to pull the licenses? Again...why always us?

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 hour ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 6 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 4 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 7 hours ago