The Council of Australian Life Insurers (CALI) is calling on the Federal Government to help fund the burgeoning Compensation Scheme of Last Resort (CSLR) and to stop putting undue pressure on Australia’s risk advisers.
CALI CEO Christine Cupitt said that life insurers support spreading the CSLR levy across the broader financial services sector and the Government, rather than saddling advisers with an unfair de facto business tax and disproportionate burden.
“Risk advisers aren’t a threat to Australians’ savings, instead they help them access peace of mind and financial security when they need it most,” Ms Cupitt said.
“The scheme is very important for victims of financial misconduct, and the Government needs to take a fairer approach and make sensible changes to the design of the scheme to ensure it remains sustainable in the long run.”
Ms Cupitt said the Government delivering on its promise of the full Delivering Better Financial Outcomes reforms would play a significant role in responding to financial misconduct.
“We have seen firsthand what happens when people don’t have access to professional financial advice. They are left with no one to talk to and, in the worst of cases, with no financial safety net to lean on when they need it most.”