Key CSLR reports remain pending as costs balloon | Australian Markets

ANALYSIS

As financial advisers proceed to fret concerning the burgeoning price of the Compensation Scheme of Last Resort (CSLR) the Senate Economic Committee inquiry which particularly investigated the impression on the scheme of the Dixon Advisory collapse stays slated to report in a fortnight.

Notwithstanding the May Federal Election and the resultant adjustments to the make-up of the committee within the new Parliament, the Senate agreed in February to increase the reporting of the inquiry to twenty-eight July.

At the identical time, Treasury is but to generate a report from its post-implementation review of the CSLR however the truth that the session course of ended on the finish of February.

But what has modified within the time between the post-implementation review session kicking off, and submissions closing on the Senate Economics Committee inquiry is that two more important failures have occurred that are already being acknowledged as having a potential main impression on the CSLR costs – the Shield Master Trust failure and that of the First Guardian Master Fund.

Advisers already know the size of the looming impression on the CSLR in circumstances the place the Australian Financial Complaints Authority (AFCA) has detailed to affected buyers how they need to proceed, noting with respect to the Shield fund that:

ASIC has listed the primary financial companies concerned with/having connections with Shield Master Fund as:

• Interprac Financial Planning Pty Ltd (AFSL 246638)
• MWL Financial Services Pty Ltd (AFSL 235096)
• Financial Services Group Australia Pty Ltd (AFSL 225985) (in liquidation)
• Next Generation Advice Pty Ltd (In Liquidation) (AFSL 1296335)

“ASIC has provided more information about who to lodge a complaint against and their applicable representatives based on your concern,” AFCA mentioned.

“You might also want to contact your superannuation trustee for additional details about your investment. If you’ve gotten considerations about your superannuation or investment platform supplier, chances are you’ll want to lodge a grievance with the related trustee.

“ASIC has recognized the next investment platform suppliers and superannuation trustees as having connections to the Shield Master Fund.

• Macquarie Wrap (investment platform supplier), Macquarie Investment Management Ltd (superannuation trustee)
• NQ Super (investment platform supplier), Equity Trustees Superannuation Limited (superannuation trustee)
• Super Simplifier (investment platform supplier), Equity Trustees Superannuation Limited (superannuation trustee)

“If you’ve gotten a grievance concerning the advice you could have obtained in relation to the Shield Master Fund, and/or a grievance about a resolution referring to you by your superannuation trustee concerning the Shield Master Fund, chances are you’ll submit your complaints to AFCA.

“If that is your intention, you should do so without delay, as we can only accept complaints about a financial firm while they are a current AFCA member,” the AFCA notification mentioned.

Clients of Dixon Advisory obtained related messaging from ASIC and AFCA and costs proceed to weigh on the system.