Senator Hume flags compensation scheme of last resort
Senator Jane Hume has announced the government is now actively working towards introducing a compensation scheme of last resort in response to the royal commission recommendations.
A compensation scheme of last resort would allow consumers to be compensated when they had experienced misconduct and lost out to a financial firm that was no longer able to pay.
“We’re also looking to establish a forward-looking compensation scheme of last resort — a substantial step in rebuilding trust and confidence in the financial system’s dispute resolution framework,” Ms Hume told the AFA Vision Conference, adding that the government was hoping to introduce legislation by mid-2021.
Ms Hume also said that the government was still working towards a single disciplinary body, with legislation also intended to be introduced in mid-2021.
“The government agreed with the recommendation and we believe the body will streamline and encourage greater professional discipline in the industry,” Ms Hume said.