In a joint statement, Treasurer Josh Frydenberg and financial services minister Jane Hume said the new legislation released by the government would implement a further seven recommendations of the royal commission, including the establishment of a compensation scheme of last resort.
The CSLR laws were originally slated for release in December last year but were pushed back to June this year due to the COVID crisis, to the disappointment of consumer advocacy groups.
“The establishment of the Compensation Scheme of Last Resort will support ongoing confidence in the financial system’s dispute resolution framework by facilitating the payment of compensation to eligible consumers who have received a determination for compensation from AFCA which remains unpaid,” the statement said.
The laws would also address the establishment of the Financial Executive Accountability Regime, which extended the government’s existing BEAR framework to all APRA-related entities.
“The Financial Accountability Regime imposes a strengthened responsibility and accountability framework within financial institutions, recognising that decisions taken by directors and the most senior executives of financial institutions are significant for millions of Australians and the Australian economy,” the statement said.
“The Morrison Government remains committed to completing implementation of the Financial Services Royal Commission and in doing so ensuring Australians continue to have trust and confidence in a strong and effective financial system.”
