ASIC’s recent request for former Dixon Advisory clients to register complaints with AFCA underscores the urgent need for a broader compensation scheme as a last resort, the FPA said.
Earlier this month, ASIC warned former Dixon Advisory customers to file complaints with the AFCA before Dixon’s membership with the AFCA ends.
ASIC said this is a necessary step for customers to maintain possible eligibility under a potential future CSLR, ASIC said.
However, CSLR has not yet been established. Moreover, the scope of the draft version of this scheme is very limited.
The FPA’s chief executive said he indicated the urgent need to establish a CSLR.
Mr Abood pointed out that the scheme draft initiated by the previous government, which expired in April this year, did not cover managed investment schemes.
“This leaves financial planners with most of the bills for plans that leave the majority of affected consumers unprotected. is not subject to,” she said.
“There is currently $3.7 million in outstanding AFCA decisions related to financial advice from bankruptcy. The total outstanding decisions in the sector are $14.7 million.”
The FPA hereby seeks to extend the CSLR beyond the powers of the AFCA in order to achieve its objective of ensuring that victims of financial fraud are compensated in the event of the insolvency of the companies involved. He said it would be clear what had to be done.
“It is also important that the scheme is funded equitably, so that the current minority of financial planners, many of whom are small businesses, do not cover all costs,” Abood said. increase.
“Among the opposition, Labor has proposed amendments to the scheme to include MIS. We look forward to implementing these changes within the government.”
