Implementation of consumer protection the key
Following the Federal Government's response to the parliamentary inquiry into the collapse of Trio Capital and the report into compensation arrangements for consumers of financial products, the SMSF Professionals' Association of Australia (SPAA) has announced its broad support.
However, Graeme Colley, director for education and professional standards, said "the proof of this pudding will be in the eating".
"What SPAA is waiting to see is how these recommendations from the Parliamentary Joint Committee on Corporations and Financial Services into Trio, and Richard St John's report into compensation arrangements for consumers, are implemented," he said.
Colley said that there were some aspects of the two reports' recommendations that could and should go further than their original proposals, such as a last-resort compensation scheme.
Given that the Minister for Financial Services and Superannuation, Bill Shorten, had responded to the two reports by saying the Government accepted "the vast majority of their recommendations", Colley said SPAA was disappointed by the Government's decision against the last-resort compensation scheme.
"SPAA will continue to advocate for such a scheme where clients have suffered financial losses because of the misconduct or insolvency of an AFS licensee," he said.
"That the compensation should be funded by a levy imposed on that sector of the industry where the misconduct occurred."
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