Victims to lose out under CSLR change: CHOICE
CHOICE response to Assistant Treasurer Daniel Mulino’s speech at the National Press Club.
Quotes attributable to Morgan Campbell, Head of Policy at CHOICE:
“While CHOICE is glad to see the Government take steps to address some of the underlying causes of the Shield and First Guardian collapses, we strongly oppose Assistant Treasurer Daniel Mulino’s proposal to limit the scope of compensation payable under the Compensation Scheme of Last Resort (CSLR).”
“It is extraordinary that Labor, who campaigned so hard to bring the Hayne Royal Commission about, are now the first to water down one of its legislated recommendations, barely two years after it came into effect.”
“The Government is proposing to carve lost investment earnings out of the CSLR, even though the current approach follows a long-established legal principle for assessing compensation. They are pushing ahead with this change even though Treasury has acknowledged that they don’t know how much these losses are actually costing the scheme, or how badly this will affect victims.”
“The cost of the CSLR for the financial advice industry is so high because there is so much more misconduct in the sector than anyone thought when the scheme was set up. The financial advice industry should be focused on cleaning itself up, rather than pressing the Government to water down the compensation available to victims.”
“Assistant Treasurer Mulino has once again come down on the side of big business – as he did with scams and the cash acceptance mandate – and left consumers to make do with weak protections.”
