CHOICE has led a joint submission to Treasury's call for input towards the review of the compensation scheme of last resort (CSLR). The CSLR ensures that victims of financial misconduct are not left completely in the lurch if they are awarded compensation by the Australian Financial Complaints Authority and the financial service provider refuses to pay.
The CSLR has only been fully operational for 12 months, but has already delivered life saving amounts of compensation to consumers. Our submission contains stories of some of those that have benefited from it already. We strongly support its continued role as part of the external dispute resolution framework for financial services.
We also recommend expansion of the CSLR to capture managed investment schemes, and empowering the CSLR to recover debts from the companies that were responsible for the loss.
Download submission (PDF)