Senate committee CSLR/Dixon inquiry now lapsed history

The Senate Economics References Committee inquiry which was aimed at reviewing the funding of the Compensation Scheme of Last Resort in the context of the Dixon Advisory collapse has lapsed without having generated a report.

With the new Parliament having begun sitting and with a new Senate Committee having been largely formed, the inquiry into Wealth Management Companies which was initiated in October/November last year and had terms of reference going to the core of the Dixon collapse will not progress.

Its core object was determining “the reasons for the collapse of wealth management companies, and the implications for the establishment of the Compensation Scheme of Last Resort (CSLR) and challenges to its ongoing sustainability, with particular reference to Dixon Advisory & Superannuation Services Pty Limited (Dixon Advisory) as an example”.

Given the substantial change in numbers in both the Senate and the House of Representatives it was always unlikely that the inquiry would continue into the term of the new Parliament.

However, the inquiry did generate 18 submissions including from the Australian Securities and Investments Commission (ASIC) and the Compensation Scheme of Last Resort (CSLR).

The formal lapsing of the Senate inquiry now leaves Treasury’s post-implementation review of the CSLR as the remaining vehicle capable of generating change to the underlying funding regime.

The Parliament House web site reveals that the position of chair of the Senate committee remains vacant but will likely be filled by a government senator with the Liberal/National Party opposition holding three positions including former frontbenchers, Senator Jane Hume and Senator Matt Canavan.

Consultations around Treasury’s post-implementation review closed on 28 February and the newly-installed Assistant Treasurer and Minister for Financial Services, Daniel Mulino, has not yet signalled the timing of tabling its report.