Compensation Scheme of Last Resort (CSLR): Reform options to support ongoing sustainability
An essential safety net for people who have experienced financial misconduct and cannot recover the compensation awarded to them because the responsible financial firm has failed to pay.
CCLS contributed to a joint consumer submission strongly opposing proposals that would reduce CSLR compensation by changing the established approach used to calculate financial loss, including lost investment earnings.
Alongside Super Consumers Australia, CHOICE, Consumer Action Law Centre, Financial Counselling Australia, Financial Rights Legal Centre and Mob Strong Debt Help, we argued that people harmed by financial misconduct should not be made to carry the cost of pressures on the scheme.
A sustainable CSLR must focus on preventing misconduct, strengthening recovery mechanisms and ensuring the sectors connected to consumer losses contribute fairly, not reducing compensation for people who have already suffered financial harm.
Read the full submission here.