On 25 November 2021, the Senate referred the Financial Accountability Regime and CSLR legislation to the Economics Legislation Committee (Committee) for inquiry and report by 15 February 2022.
The Committee Report (available here) recommended that the bills be passed.
In relation to the CSLR, the Committee expressed the view;
“that the scheme, broader than initially envisaged by both the Ramsay Review and Royal Commission, is based on prior extensive evidence, consultation, and recommendations of the Royal Commission, which concluded that a targeted and scalable scheme covering financial advice was the most appropriate response. The committee believes that the proposed compensation cap and levy will ensure the long-term sustainability of the scheme. Importantly, that it correctly balances the liabilities for industry, the provision of just compensation to claimants from scheme contributors and, restoring consumer confidence in the financial services sector as a whole.”
Additional comments provided by Labor Senators in the Committee Report recommended that the government expand the scope of the scheme to include MIS’s.
The CSLR related bills are currently before the House of Representatives.
Given the limited parliamentary sitting days before an upcoming election, it will be difficult to pass the relevant bills through both houses ahead of the election.
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