Coronavirus (COVID-19) updates from the Australian Government

Financial Services Royal Commission – Compensation Scheme of Last Resort

14 days left to have your say
Date
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Key Documents

Recommendation 7.1 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission) recommended that the three principal recommendations to establish a Compensation Scheme of Last Resort made by the Supplementary Final Report of the Review of the financial system external dispute resolution and complaints framework (Ramsay Review) should be carried into effect.

In its response to the Royal Commission, the Government committed to establish a forward-looking and industry-funded compensation scheme which extends beyond personal advice failures. The establishment of the Compensation Scheme of Last Resort will support ongoing confidence in the financial system’s dispute resolution framework by facilitating the payment of limited compensation to eligible consumers who have received a determination for compensation from the Australian Financial Complaints Authority which remains unpaid.

The Government has released for public consultation exposure draft legislation that would establish the Compensation Scheme of Last Resort. The draft legislation contains the key features of the scheme, including the ability to authorise an operator of the scheme, eligibility requirements, compensation available for each eligible AFCA determination, the levying framework to fund the scheme, and the governance of the scheme.

To support the draft legislation, the Government has also released a proposals paper, which outlines the Government’s proposals in relation to various aspects of the CSLR. These aspects include scope, payment arrangements, funding arrangements, governance and mechanisms to maintain the integrity of the scheme.
 

Responding

You can submit responses to this consultation up until 13 August 2021. Interested parties are invited to comment on this consultation.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

View our submission guidelines for further information.

How To Respond

Email

CSLR@treasury.gov.au

Post

Address written submissions to:

Financial System Division
Treasury
Langton Crescent
Parkes ACT 2600

Enquiries

Email: CSLR@treasury.gov.au
Phone: Chris Lyon +61 2 6263 2111