The Federal Government has authorised Compensation Scheme of Last Resort Limited (CSLR Ltd) as operator of the new financial services CSLR, which is expected to start accepting claims in April 2024.
The CSLR will provide up to $150,000 in compensation to eligible consumers who have a relevant Australian Financial Complaints Authority (AFCA) determination in their favour that remains unpaid.
Relevant determinations relate to:
- Personal financial advice provided to retail clients on relevant financial products
- Dealing in securities for retail clients but not issuing securities
- Providing and arranging credit
As operator, CSLR Ltd will be responsible for considering applications for compensation and estimating scheme costs to be levied on industry each year.
CSLR Ltd looks forward to working with the Government and stakeholders to implement this important reform in consumer protection.