CSLR should be broken down into 2 sub sectors, one for product manufacturers and one for financial advisers.
Product manufacturers account for 98% of the unpaid claims and they must contribute 98% of the pool to fund CSLR.
We made the decision 30 years ago to cease promoting unlisted managed funds and none of our clients hold any managed investments that are NOT listed on the ASX.
We strongly believe in Managed Funds; however we see that unlisted managed funds fall over when markets suffer a market correction and outcome is unacceptable.
The $40 billion worth of frozen funds are one of the reasons for our decision and ASIC must take its share of the responsibility for these losses.
ASIC should be compelled to fund 50% of the losses caused by product failure as part of their share for the lack of responsibility for failing to properly regulate their distribution.
ASIC must ensure that all products meet a code of practice that ensures that they are unlikely to fail and further they can meet redemptions in difficult markets.
Only ASIC has this power, and they should stop running for cover every time a product fails.
William Mills Price Financial Intelligence