Advisely Partner30th Jan AMA: I'm Phil Anderson, GM Policy, Advocacy & Standards at FAAA, Ask Me Anything!
Advisely PartnerNo questions on CSLR yet. Let me then advise that we will very shortly know what the cost of the scheme is projected to be in the 2025/26 financial year. The CSLR have already made it clear that it will be more than $20m for the financial advice sector. The CSLR can issue a levy for up to $20m for each sector. Where the estimate for a sector is greater than $20m, it is referred to the Minister and the Minister can chose to take one of three options:
- Defer payment of claims over multiple periods.
- Charge the relevant sector the full amount
- Charge multiple sectors, including those who are not otherwise caught by the CSLR levy.
Deferring payment is not the answer. We have a huge amount that needs to be paid out and taking this option would just drag out the Dixon Advisory mess (and other messes) for years to come. Our firm preference is for the Minister to commit to not charging the advice profession more than $20m in any one year and spreading the excess over a broad range of other sectors, including the banks, insurers, super funds and MISs. We seek a timely response from Government on this, as no sector can afford to have a large contingent liability standing over both existing operators and potential new entrants.
