The opposition has criticised the Federal Government’s proposed compensation scheme of last resort (CSLR), with compensation being capped at a third of what was recommended by the Royal Commission.
The opposition said it was inadequate to cap compensation at $150,000, instead of the $550,000 recommended by Commissioner Hayne.
The Government announced it released draft legislation for the CSLR, which was previously delayed due to budgetary reasons.
Stephen Jones, Shadow Assistant Treasurer and the Shadow Minister for Financial Services and Superannuation, said it was four years late and way short of the mark.
“This explains why it tried to bury its release it late on Friday,” Jones said.
“Scott Morrison and Josh Frydenberg have rejected the Hayne Royal Commission recommendation to set up a bona fide scheme.
“It also excludes court determinations from the scheme, going against Commissioner Hayne’s specific advice in his final report.
“Scott Morrison and Josh Frydenberg have missed every deadline they set themselves since they commissioned the Ramsey Review in 2017 to address the broken dispute resolution system for the financial sector.”
Jones said the Government had consistently watered-down Commissioner Hayne’s recommendations.
“This includes moving to undermine the Commissioner’s very first recommendation, to keep in place responsible lending obligations on banks,” Jones said.
“Josh Frydenberg and Scott Morrison always fight to reduce cost of wrong-doing in the financial sector.
“But they will never fight for strong protections for ordinary Australians deserve and expect when they seek financial advice.”