Call Senate CSLR inquiry witnesses ASAP says FAAA | Australian Markets

The Monetary Recommendation Affiliation of Australia (FAAA) desires the Senate Economics Committee to make sure that Treasury’s review of the Compensation Scheme of Final Resort (CSLR) doesn’t derail scrutiny of the scheme and how it was set up.

FAAA chief govt, Sarah Abood is urging the chair and deputy chair of the Senate Economics Committee to provoke the calling of witnesses to its inquiry into Wealth Administration firms.

She mentioned 1 February marked three months for the reason that deadline for submissions to the Senate inquiry had closed “and yet no witnesses have been called and no appearance dates set”.

The Senate Committee Inquiry has obtained 16 submissions, and its phrases of reference permit close examination of the actions of Treasury and the Australian Securities and Investments Fee (ASIC).

Importantly, the committee is chaired by NSW Liberal Senator, Andrew Bragg, with the deputy chair being Victorian Labor Senator, Jess Walsh.

Importantly, there exists a restricted window for the Senate Committee to listen to from witnesses with the Authorities having  already flagged that the Federal Funds shall be handed down in March and with the Federal Election more likely to be known as shortly thereafter.

Referring to the Authorities’s announcement of a Treasury Evaluate of the CSLR, Abood mentioned this shouldn’t be used as an excuse to delay the Senate Committee’s inquiry into Dixon Advisory.

“The case had been made for the vital significance of this inquiry, and stakeholders have supplied a number of submissions. There’s a lot that also must be investigated. Senators Bragg and Walsh ought to call witnesses for this inquiry instantly.

“We have now continued to unearth issues not solely at Dixon Advisory but additionally at different corporations the place a selection of issues have arisen.

“Advisers are rightly indignant that it now seems as if there’s a continued effort to not delve into these points, and to keep away from a real investigation of the place this has all gone incorrect.  It’s significantly vital to progress with this investigation now, in gentle of the estimates that the financial advice occupation may finish up paying an extra $50 million for CSLR subsequent financial yr, on prime of the $20 million sector cap.

“The FAAA continues to advocate for members’ interests and has been calling on the government to fix problems with the CSLR since before it was legislated.”

“If anybody is in any doubt that there are issues with the best way that the CSLR has been designed, and the potential implications emanating from not simply Dixon Advisory however different corporations, then they need solely to learn the submissions which have already been made.

“Much of the work to determine the problems with the CSLR has already been done, and it must not go to waste,” Abood mentioned.