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clock Created with Sketch. 18/12/21
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Originally posted by NOR
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This may help Alexandia 07 take note of date .*******Compensation Scheme of Last Resort Current Matter CSLR Legislation 14 December 2021Current Matter On 28 October the Federal Government introduced legislation to establish the Compensation Scheme of Last Resort (CSLR).The establishment of the CSLR 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 the Australian Financial Complaints Authority (AFCA) which remains unpaid. AFCA confirms its support for the creation of a CSLR. AFCA believes Australia needs a compensation scheme for people who have the right to a remedy for financial misconduct but who are left without redress when a financial firm becomes insolvent. AFCA looks forward to working with the Government and stakeholders to help implement this important reform. Paused complaints In April 2020, AFCA paused all complaints against insolvent financial firms while awaiting detail of the scope and timing of a CSLR. Complaints against insolvent financial firms and other complaints that were on pause while awaiting the introduction of CSLR will continue to be paused and will be assessed once the legislation comes into effect. AFCA will only be able to fully assess the impact of the CSLR to a complaint when the scheme is legislated. We will review all relevant complaints as soon as that occurs. AFCA will contact all parties to discuss the status of paused complaints after that assessment is completed. Closed complaints Closed complaints with determinations against insolvent financial firms will be assessed once the legislation comes into effect. AFCA will only be able to fully assess the impact of the CSLR to a complaint when the scheme is legislated. We will review all relevant complaints as soon as that occurs and contact those that fall within the scope of the scheme.
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Thanks for your reply NOR.
