Advisely Partner
Advisely PartnerHi Daniel, before I file this under either C or G, I might make some short further comments. We are now stuck with a scheme of some form. The Parliament will not agree to remove what is seen as a consumer protection. The ultimate reality is that this is now beyond debate and the focus is about the funding.
In 2019, the Government of the time paid out $30m for all unpaid determinations of FOS for the last 10 years. That set an expectation of a bill of around $3m a year. Of course we feared a black swan event, and we were not to know that we would have five of them in the first year of the scheme. The initial plan was to have a sector cap of $10m. We could probably begrudgingly live with that, however adviser numbers have fallen greatly and the cost has ballooned above any realistic expectation. We might well argue that we should not have a CSLR, however what we are working towards is one that is sustainable.
