Submission to: Treasury
Financial Sector Reform Bill 2022 – Compensation Scheme of Last Resort and Financial Accountability Regime
Joint consumer group submission (led by Choice) about specific components of the Financial Sector Reform Bill. In relation to a compensation scheme of last resort, the submission recommends expanding the scope of the proposed scheme including managed investment schemes, funeral expenses policies and relevant court and tribunal decisions. The compensation cap for the CSLR needs to be the same at that for the Australian Financial Complaints Authority. In relation to the Financial Accountability Regime, the Bill needs to provide for civil penalties, the deferred remuneration obligations need to be strengthened, the scope of the regime should expand to include senior executives and managers and this group should also (as in the UK) be required to treat customers fairly.