SMSF Association Submission
Chartered Accountants Australia and New Zealand, CPA Australia, the Financial Planning Association, the Institute of Public Accountants and the SMSF Association support the implementation of a ‘true’ compensation scheme of last resort.
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.
It is for these reasons that our associations support the Government’s intent to establish a Compensation Scheme of Last Resort (CSLR), which will help fulfil this objective while also supporting confidence in the financial sector’s dispute resolution framework.
However, 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 that all financial product providers and advisers, not just those in the retail financial advice sector, have a shared responsibility to lift the confidence and trust in the sector.