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Submission to Senate Economics References Committee Inquiry into Sterling Income Trust

November 2021

Senate_Economics_References_Committee_Inquiry_into_Sterling_Income_Trust

CHOICE has drafted a submission to the Senate Economics References Committee Inquiry into Sterling Income Trust.

The Sterling Group collapse has caused homelessness and severe financial hardship for

retirees and pensioners across the country. 

CHOICE called for the Federal Government's proposed compensation scheme of last resort ('CSLR') be expanded to include managed investment scheme collapses. A broad-based, industry-funded CSLR that includes managed investment schemes will allow most Sterling Group victims to access compensation.

CHOICE also called for ASIC to be a more proactive and responsive regulator. We recommend that ASIC use its full suite of regulatory tools including issuing timely public warning notices and their new product intervention powers as soon as early reports of misconduct emerge. CHOICE also recommend that ASIC be granted a new directions power to compel a financial services licensee to change its conduct, including preventing it from taking on new clients. 

Download submission (PDF)

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