Financial Services Royal Commission - Compensation Scheme of Last Resort
The submission to the Treasury in response to draft bills regarding the Compensation Scheme of Last Resort (CSLR) was prepared by the Australian Consumer Law Committee (the Committee) of the Legal Practice Section.
The CSLR has been contemplated for many years, including during the Review of the financial system external dispute resolution framework (Ramsay Review) 1 in 2017 prior to the Financial Services Royal Commission. It is important for consumers that the CSLR is introduced and effective as soon as possible.
On balance, the Committee supports the introduction of the CSLR, but provides some further commentary in the submission below in respect of certain aspects of the proposed CSLR which the Committee believe may be enhanced in a way that prevents unfair consumer outcomes. The Committee makes the following recommendations to the proposed bill to ensure fairness for consumers, in particular consumers who are vulnerable to financial exploitation.
You can read the full submission below.
1 Review of the financial system external dispute resolution and complaints framework: Supplementary Final Report, 6 September 2017 (‘Ramsay Review’).