The Compensation Scheme of Last Resort (CSLR) has become a hot-button topic among financial advisers, with the sector bearing the brunt of the costs following the collapse of Dixon Advisory. However, it isn’t the only financial services sector impacted, as the 10 largest banking and insurance companies are already covering the pre-CSLR period of complaints to the tune of $241 million.
As the submissions for the Senate inquiry into the failure of wealth management companies and the impact on the CSLR have started to be released, some key issues have started to emerge around where the major problems lie and what can be done to fix them.
Listen as they discuss:
- How the CSLR came about and why the Dixon Advisory collapse has caused so many problems.
- The ongoing concern of what will happen when the $20 million subsector cap is exceeded.
- Options to address large firms walking away from their subsidiaries and leaving it to advisers to pick up the tab.
