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.
Doesn’t mean a thing unless it also includes compensation for consumers who suffered losses through deliberate concealment of wrongdoing and/or misleading and deceptive conduct by financial firms during EDR. Massive rorting of the EDR system has been going on for decades by financial firms refusing to disclose information, and making false and misleading representations during EDR. The AFCA has no power to re-open a complaint that was previously corrupted by misleading conduct during complaints handled by predecessor schemes. The Government shut the door on compensation for victims of this practice via the terms it dictated to AFCA, yet the practice still continues today.
Don’t worry. There will be another levy and net returns reduced further for the costs. They had better leave SMSFs out of it! Leave that to PI insurance or the Courts. How could you ever insure against cheating family members? Court cases can cost hundreds of thousands.
Can’t wait for another massive Adviser / AFSL invoice to fund this one.
Just like ASIC adviser funding increases 65% in 2 years.
Death by BS REGS and ever increasing Costs.
yay, so taxpayers foot the bill for bank management failures