A compensation scheme of last resort would allow consumers to be compensated when they had experienced misconduct and lost out to a financial firm that was no longer able to pay.
“We’re also looking to establish a forward-looking compensation scheme of last resort – a substantial step in rebuilding trust and confidence in the financial system’s dispute resolution framework,” Ms Hume told the AFA Vision Conference, adding that the government was hoping to introduce legislation by mid-2021.
She also said that the government was still working towards a single disciplinary body, with legislation also intended to be introduced in mid-2021.
“The government agreed with the recommendation and we believe the body will streamline and encourage greater professional discipline in the industry,” Ms Hume said.
So, they’ll make advisers pay this (either directly or indirectly), which will just add yet more cost to providing advice. At this rate only the top 0.01% of Australians will be able to afford advice.
Would it not just be simpler to outright ban financial advice.
It’ll be a shame when there are no planners left because they’ve all gone broke paying government levies and fees, then this CSLR will really cop a pounding!!
Yep just can’t wait for the Adviser / AFSL whopping Invoice $$$$$$$$$$$$$$$$$ to pay for yet another BS set of REGS.
And just like the ASIC Adviser fees will go up exponentially, ASIC Adviser fees only up 65% in first 2 renwal invoices.
ASIC even have the hide to charge Adviser for their complete Lies in the SMSF Fees Info Sheet – that they have now agreed was not using good data.
This whole Industry and the ASIC & Canberra Bubble Morons are so out of touch with any form of reality.
RIP Financial Advice !!!
ASIC & Pollies will not stop until it’s only Industry Funds providing Intra Fund Sales Advice left, paid for by Hidden Commissions.
What a great Result Canberra.
Read additional licence/ASIC fees – and so my fees will go up accordingly – again.
I won’t be paying. Despite being in the first tranche of FASEA fully qualified Advisers, 15 years experience and 23 years until retirement I am leaving the profession. Such a RELIEF.
Financial regulation has always rejected the notion of a compensation scheme of last resort because it encourages bad practice. It means that the good advisers will again have to pay for the bad and unscrupolous advisers/businesses.
So when the majority of advisers operate in the best interests of their clients, Hume now expects them to also pay for the businesses who do not operate in the clients best interests. More incompetent decision making by this Governement and Minister.
So more fees to Financial Planners! Will this reduce the cost of PI cover?
But no compensation for retail advisers who have had their advice businesses gutted by the Coalition.
Yep, no doubt funded by……drumroll please……a levy on advisers!
Another step in cutting the cost of advice…errr.
Guess who’s gonna pay for that one…