The Compensation Scheme of Last Resort (CSLR) has released the FY25–26 revised levy estimate.
Compiled in conjunction with the CSLR’s principal actuary, the revised estimate for FY25–26 has been calculated at $75.7 million, down from the initial estimate published in January of $77.98 million.
According to the CSLR announcement, the need for a revised estimate was triggered due to the initial levy estimate exceeding the $20 million cap for the personal financial advice subsector.
While the revision is a long way off impacting the subsector cap, the cost attributed to financial advice has fallen from $70.11 million to $67.29 million, which is the largest change of any sector.
The CSLR added that it has now notified Financial Services Minister Daniel Mulino of the need for a special levy of $47.29 million.
David Berry, CEO of the CSLR, said the harm caused by those in the finance sector doing the wrong thing disproportionately impacts and detracts from those acting correctly, noting that the rate and number of firm failures show little sign of abating.
“Whilst we are disappointed at the need for a special levy, we recognise these funds provide a measure of compensation for those who have experienced lengthy and stressful financial loss,” Berry said.
“The CSLR continues to operate in alignment with the legislative framework in a manner that is effective, efficient and economical as we strive to increase consumer trust across the financial services sector.”
The securities dealing subsector, on the other hand, saw a considerable increase in its estimate, which now sits $2.4 million higher at $4.7 million.
The CSLR said this would be funded by its cash reserves and recovered in the FY26–27 annual levy for securities dealing.
Advisers love paying for other people’s illegal activities.
– Said no adviser ever.
The CSLR is sooooooooooo far from “effective, efficient and economical” for the Advisers that are being forced to pay $5k each for MIS failures we had nothing to do with.
What other profession or industry is forced to pay compo for problems they have zero to do with ????
We should be taking ASIC and them to court. It’s essentially fraud to the financial advice industry.
How is MIS our fault and IFA is stopping freedom of speech as well.
Stop censoring legitimate posts IFA!
$3m off adviser bill – stop normalising this as an adviser expense. It is the government holding small business to ransom. It is not acceptable by any means and I hope that all who are involved in doing this to financial advisers end up retiring with not a cent to their names.
How good. And only 350 less advisers to split it between. I’m sure this will really take the pressure of all of us that have to pay a fee for the people doing the wrong thing.
Surely as an industry we need to fight harder to end this disastrous money grab.
Surely legally this can’t be right.