CSLR will not authorise compensation for unlicensed advice
The Compensation Scheme of Last Resort (CSLR) has made clear that it will not be authorising the payment of compensation claims derived from the delivery of unlicensed advice.
It pointed out that all claims referred to the scheme were because organisations were members of the Australia Financial Complaints Authority (AFCA) which meant that advisers or accountants responsible for advice were appropriately licensed at the time it was delivered.
Outlining the first compensation payments authorised by the CSLR this week, the scheme referenced a “fraudulent financial advisor” and an “accountant” with a spokesperson later making clear that, in both instances, those providing the advice were licensed to do so at the time.
The total of the first pay-outs authorised by the scheme was $360,000.
It’s no surprise there is confusion over the scope of CSLR. They published highly distorted and sensationalised cases studies, designed to vilify financial professionals and justify their own existence. CSLR cannot be trusted to act professionally and impartially.
Who is going to defend us? We have professional body sitting on a truck load of cash. Where is the marketing campaign to defend us? Why pay PI if we have to pay for this scheme as well. I’m one of those that wasn’t even authorised nor a business owner when this happened and now getting stung for multiple advisers. It’s fundamentally wrong. Would be good to see our professional bodies stand up for their members.
You obviously, by your own admission, haven’t been around that long. They have NEVER done that.
It seems you are quite new to the business, I’m afraid what they didn’t tell is no one gives a F##K about advisers and our representative bodies are next to useless. My advice which I wish I had taken myself 25 years ago is build wealth outside your business and if you have a strong balance sheet use to buy other business. Unfortunately, it’s not going to get any better.
Guaranteed the Accountant is no longer AFSLicensed / Limited AFSL as 95% of them dumped them and thus Accountants and this case will not pay CSLR levies.
Just like the banks dumped Advisers and haven’t paid ASIC levies.
And of course MIS that fail and cause most claims don’t pay CSLR levies either.
Freaking criminal for good real Advisers to be hit again.
Is there any other profession or business that has to pay for compensation of others that fail ?