Mulino can spread CSLR special levy load, if he chooses
The Government has opened consultation around the funding of the excess financial advice sub-sector levy for the Compensation Scheme of Last Resort with the consultation paper noting he has the option of spreading the load.
That load may be spread over other sub-sectors or over time in terms of multiple financial years.
While the Treasury consultation paper has insisted the options are not indicative of the ultimate outcome, it said they were not mutually exclusive.
“The Minister may choose to make a determination that both imposes a special levy and spreads compensation out over a longer period, and may choose to make a determination that imposes a special levy that does not recover the full amount of the excess,” it said.
The consultation paper also makes clear that the legislation does not allow the Government to pay the excess.
However, it said that Mulino has the ability to spread the load over multiple sub-sectors if he believes that is the most effective way of enabling CSLR claims to be paid in a timely manner.
“The legislation and extrinsic material do not offer further guidance on how to assess whether the special levy is ‘the most effective way’ of meeting the CSLR’s funding needs to enable eligible claimants to receive timely compensation,” it said.
The consultation paper also makes clear that the minister has to have regard to the impact a special levy may have on a sub-sector’s financial sustainability and viability and the financial system more broadly.
Announcing the consultation., Mulino said the responses received would go towards informing Treasury’s ongoing post-implementation review of the CSLR.
The Financial Services Council (FSC) was amongst the first to respond to the consultation welcoming the minister’s consultative approach and urging that he “provide the industry with confidence that the scheme will be brought under control before proceeding with any decision on a special levy”.
Here’s an idea Canberra and MM.
Make the MIS’s that have been run by frauds and or failed PAY.
ASIC that does zero to regulate properly, PAY
AFCA that makes up mythical But For losses, PAY.
But most likely, MM, ALP, ASIC AFCA and CSLR as team corrupt Canberra will say……………………………………….ADVISERS to Pay.
At that stage ADVISERS MUST REFUSE TO PAY.
Let’s make Canberra try to shut down our whole Advice Industry.
It should be abolished. It’s an unwarranted cost to my business, and has nothing to do with me. Imagine they expanded this out to accountants, solicitors, and every other profession where any losses incurred had to be paid by the rest of the industry instead of the perpetrators themselves or their insurance companies. It would bankrupt most industries. It’s a completely unjustifiable expense that I am forced to pay for. I’m paying for the crimes of rogue advisers and rogue product providers. Why should I be forced to pay for something I have nothing to do with and have no control over. It’s theft, plain and simple !!!!