Submission on CSLR – Post Implementation Review

On 28 February 2025, the Institute of Financial Professionals Australia (IFPA) lodged its submission on the post implementation review of the Compensation Scheme of Last Resort (CSLR). In principle, IFPA supports the core objective of the CSLR, which is ensuring consumers can…

On 28 February 2025, the Institute of Financial Professionals Australia (IFPA) lodged its submission on the post implementation review of the Compensation Scheme of Last Resort (CSLR). In principle, IFPA supports the core objective of the CSLR, which is ensuring consumers can access financial compensation when they suffer losses due to poor or negligent financial advice. However, we believe the scheme’s current design and implementation contains fundamental flaws that make it both unfair and unviable. Without urgent amendments, the CSLR poses a significant risk to the future of the financial advice sector. IFPA has outlined eight recommendations to improve the operation and funding of the CSLR.

Further details regarding our recommendations can be found in our submission and media release.