The Albanese Government is strengthening the financial system to provide victims of financial services misconduct with access to redress and compensation.
The Compensation Scheme of Last Resort (CSLR) is now beginning to process claims for compensation payments from eligible consumers.
The CSLR provides compensation of up to $150,000 to eligible consumers who have an unpaid determination from the Australian Financial Complaints Authority (AFCA) relating to the provision of personal financial advice, credit intermediation, securities dealing and credit provision.
The CSLR was first proposed by the 2017 Ramsay Review, supported by the Banking Royal Commission, but was not delivered by the former Coalition government. The government is delivering on its election commitment to establish the CSLR, finalising one of the last outstanding recommendations of the Royal Commission.
The Albanese Government is committed to strong consumer protections in the financial sector. The CSLR will further strengthen consumer trust and confidence in Australia's financial system.
Quotes attributable to Assistant Treasurer and Minister for Financial Services, Stephen Jones MP:
"The compensation scheme of last resort will strengthen consumer trust and confidence in Australia's financial system."
"This scheme will give victims an avenue for redress when things go wrong."
"The government stands with consumers to ensure there are robust protections in place for them."
