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.”
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?
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.