Jones urges for ‘long overdue’ CSLR legislation to be passed this month

Financial Services Minister Stephen Jones is urging for legislation on the Compensation Scheme of Last Resort (CSLR) to be passed by parliament this month.

The government reintroduced a package of legislation to establish the CSLR as well as the Financial Accountability Regime (FAR) earlier in March.

“These are important protections for consumers, and they have waited long enough,” Minister Jones said in a statement on Monday.

At present, there are approximately 2,000 cases on hold with the Australian Financial Complaints Authority awaiting passage of the CSLR, and in another 30 cases, compensation has been awarded but can’t be paid until the scheme has been established.

“If the CSLR bills are not passed this month, consumers will be waiting until 2024 to receive compensation,” Minister Jones said.

“Similarly, the longer the wait for the FAR goes on, the more uncertainty there will be amongst the financial industry about the obligations that will be imposed upon them.”

Minister Jones noted that the legislation will provide an avenue of redress for victims of financial misconduct and make executives more accountable for the conduct of financial institutions.

“These measures will strengthen our financial system. They are supported by trusted consumer advocates such as Choice and are a direct response to some of the revelations heard at the Hayne Royal Commission,” he said.

“It’s time to get these things done.”