CA ANZ’s joint submission on the Compensation Scheme of Last Resort Bill Inquiry supports the Government’s intent to establish a Compensation Scheme of Last Resort.

We are concerned that the scheme proposed in the Bill has significant short comings, including its narrow scope, that it appears to provide inadequate coverage to consumers and that it does not look to address the underlying causes of unpaid determinations.

We believe it is essential that there is an appropriate external dispute resolution (EDR) framework for the financial services sector that ensures industry participants are accountable for the financial products and advice they provide. The framework should appropriately protect consumers and, where necessary, allow them access to adequate compensation and redress.

Recommends that amendments are made to the draft legislation to ensure that the proposed CSLR can only be used as a last resort, is appropriately calculated, and applies to all financial service industry participants.