The Australian Senate has approved a law that creates the Compensation Scheme of Last Resort (CSLR). This law ensures victims of financial wrongdoing will finally be able to receive money as a form of compensation.
This meets a suggestion from the Hayne Royal Commission to improve things.
The CSLR will give up to $150,000 to people with unsatisfied decisions from the Australian Financial Complaints Authority (AFCA) concerning personal finance, credit handling, securities dealing, and/or credit providing.
The Government will pay the expenses to get the CSLR started right away, such as the cost of the first levy period up until the end of 2023-24. After that, the industry will pay for the scheme’s future expenses.
From April 2024, people can make a claim for money if they were affected during a time some companies went out of business. People will get their money soon after they make their claims. AFCA is now looking into any complaints that were put on hold due to the companies’ insolvency.
Read more: Austria FMA Alerts | Brokers Times
