CSLR cost estimate soars to $77.9m
The Compensation Scheme of Last Resort has released its FY26 initial levy estimate calculating it at $77,975,000 necessitating a ministerial decision on a special levy.
It said the funds will facilitate CSLR processing 1800 claims across the Pre CSLR levy and the FY26 levy estimate and the payment of compensation for 491 claims in relation to the FY26 levy estimate. This amounts to a three-fold increase in processing volume relative to FY25.
The announcement said that of the $77.9 million estimate, $70.11m is attributed to financial advice, $2.80m to credit provision services, $2.72m to credit intermediaries and $2.34m to the securities dealing sub-sector.*
Is there one left parting gift from Jonesy to the financial planners? Quick Jonesy pull up stumps and get of there!
So my contribution as a single adviser practice will be around $5k?
Costs are getting out of control when added up.
Can someone explain why I need PI AND CSLR ?
Feels like a double dip
Why do you need both? One is to pay your client claims if you’re a bad boy/girl and the other is to pay claims of all those other organisations who didn’t bother with PI cover…
We should not be paying for the fk ups of others. Sad as it might be. Other advisers should be paying for bad advisers. Those bad advisers should be made bankrupt and they can pay. as for the victims. sorry but others shouldn’t have to pay up for them. the crooks should and the crooks should also see the inside of a jail cell for a long long time.
This attitude that fk ups will be fully refunded is a cancer. Investing isn’t without risk. Sadly some advisers are the fk’ing risk
Why do the honest ones keep paying for the thieves??? Here’s a simple solution, let Evans & Partners pay for the problem they created.
This fee has nothing to do with me. I don’t give the bad advice, nor can I stop those that do. I DO NOT WANT TO PAY IT. I am a small business and choose to be as I don’t want to be managing staff and not seeing/helping my clients but even if I was huge and could afford it – I don’t want to pay for the crooks who scam people out of their savings. I am here to look after MY clients. Does a good realestate agent pay for the house that was sold by another realestate agent knowingly – full of termites? NO. Do accountants pay for the dodgy accountants that get caught lodging false tax statements or deliberately cooking the books- NO. Infact if a bookkeeper steals money and gets caught – I know of one where the victims are not even sending them to court and she is on a payment plan. If they sent her bankrupt they’d never see their money again. Insane that this person still operates in my view. When a unit block is built and the engineers got it wrong so people can’t move it – does their body make all the good engineers pay for this mishap? – NO. I think the government are trying it on with the financial planning profession and we need to tell them where to go. Stephen Jones is a joke. The media are not much better with their comments. They just say what the government want them too. Oh, affordable financial advice is something Stephen has put out for all Australians. What a load of rubbish.
I’m in the same boat as you, and fully concur.
It can only be concluded that the government (both Liberal and Labor) just don’
t want there to be an advice industry of independent financial advisors.
Advisers must revolt on mass 100% and refuse to pay.
The Govt / ALP / Jonsey refused to pay for Dodgy Dixon’s MIS Fiasco that ASIC allowed to happen.
Let Govt, ASIC & CSLR try to shut us all down.
Get stuffed Govt, ASIC & CSLR.
You pay.
Not honest advisers
They honestly have no idea what we do.
I did (sadly) anticipate this as would be seen from several posts I made some two years ago before the implementation of CSLR. This is also the very reason I pulled the pin on a career spanning 35 years at age 60. Loving my retirement and genuinely feel devastated for my industry/ profession that the idiots in charge are destroying a valuable service at a time when so many need guidance. The idiots should hang their heads in shame…except they have none.
I really would like to know the intricate details of these claims being paid out. And why PI insurance is not covering them.
It is all such a stitch up.
I have heard that this was backdated and pushed by a number of “Canberra residents” who had a vested interest in recovering funds they had invested in Dixon’s themselves. If there’s a journo reading this you might want to use the FOI to get the list of benefactors of the CSLR as it might make some interesting reading…
Why should good decent Financial Planners be forced to pay for a few rogues. That’s what the courts are for.
This is pure theft from honest hardworking planners. I say that we unite and request compensation for this theft.
What other industry does this. It’s an absolute joke that honest hardworking planners working individuals have been forced to pay for something completely out of their control. It’s disgusting and just another form of illegal taxation.
This inept government and the organisations they create have no shame.
The fact that individuals have lost money is not the fault of honest advisers, it is the fault of an inept government and inept regulator. Where’s the PI insurance for these cases. That’s the fault of regulators, not planners. All planners should refuse to pay a single cent for your fuckups, and honestly I believe a class action against the government and the regulator is due on this matter. These are not my debts, so go to hell. Stop robbing the innocent to pay for your inept regulation.
Agreed this is a Joke. It is clear, the Conflict of Interest is that a vast majority of Dixon Advisory Clients, Now Evan and Partners are Canberra Beucrats. Also well it seems to be forgotten that the Head of Advice for Dixon at the time is now the Head of Financial Services in the Treasury. This needs to be yelled from the Rooftops till she fronts up and explains the failure and that it is also explains why ASIC did not investigate and ASIC allow the transfer of clients, assets, staff and Advisers to E & P. Why was the PI allowed to lapse. I guess that the GOvernment does not want an educated population to be advised on their financial future
I look forward to paying my $5,000+ contribution to bail out those who have received poor advice, along with the other innocent 15,000 advisers in the industry. It warms my heart to know that the people who caused the loss for clients aren’t punished. I’m sure they didn’t mean it, after all.
$5k pa minimum per adviser
And likely more
Ongoing