Government consults on financial compensation scheme of last resort

The Government is consulting on a potential financial compensation scheme of last resort, following from the expansion of the terms of reference of the review of the external dispute resolution and complaints framework.

“Earlier this year the Government extended the terms of reference for the independent review conducted by Professor Ian Ramsey into external dispute resolution in the financial services sector,” said Minister for Revenue and Financial Services Kelly O’Dwyer.

“The new terms of reference enables the independent panel to make recommendations on the establishment, merits and potential design of a compensation scheme of last resort as well as the merits and issues involved in providing access to redress for past disputes in the financial sector.”

The Government has released a Supplementary Issues Paper, so the panel can consider stakeholder views on the expanded terms of reference.

The panel is due to give its report on these further matters to Government in the second half of 2017.

The Issues Paper includes questions around Part 23 of the SIS Act, which makes allows for financial assistance to APRA-regulated super funds that have suffered a loss from fraudulent conduct or theft. The Paper wants to hear from stakeholders on the strengths and weaknesses of Part 23.

The closing date for submissions in response to the supplementary issues paper is Wednesday 28 June 2017.

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