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Compensate victims of financial misconduct

To Daniel Mulino:

 

The Compensation Scheme of Last Resort (CSLR) was established to provide a safety net for Australians who suffer losses because of financial misconduct, including victims of the Shield and First Guardian collapses.

 

We call on you to keep the government’s promise to these victims and ensure they receive fair compensation for the losses they have suffered.

 

Sign the petition:

 

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Don't make victims pay for financial system failures


Australians who lost their savings because of poor financial advice were promised a safety net through the Compensation Scheme of Last Resort (CSLR), funded by levies from the financial industry. Now, the government is considering changing the rules in a way that could leave victims without fair compensation for the losses they suffered.

For people affected by the collapse of the Shield and First Guardian Master Funds, the consequences have been devastating. Some victims have lost a significant portion of savings and – in some cases, their entire life savings.

The Compensation Scheme of Last Resort (CSLR), which is funded by a levy on the financial industry, was a key recommendation of the Banking Royal Commission to ensure victims of misconduct aren’t left high and dry when a financial services business goes bust. This win only happened because tens of thousands of CHOICE supporters took action. Now, we have to come together again to defend it.

The government is considering excluding lost investment earnings from compensation. This could leave victims with far less compensation than they were promised and make an already devastating situation worse. The financial impacts of misconduct get worse the longer it occurs. Modelling from Super Consumers Australia shows that victims of the First Guardian Master Fund and Shield Master Fund collapses could end up $26,500 worse-off on average if these changes go ahead.

Victims of financial misconduct have already suffered devastating losses. They deserve a government that stands by its commitment to right these wrongs.

To stop these crucial protections being watered down, we need to show that tens of thousands of people won’t stand by and let this happen. Sign the petition to protect fair compensation for victims of financial misconduct now.

FAQ

The Compensation Scheme of Last Resort (CSLR) was established to provide compensation to eligible consumers who have suffered financial loss because of misconduct by a financial adviser or other financial services provider, where they have been unable to recover the money through other avenues.

The CSLR was introduced following recommendations from the Banking Royal Commission and a sustained campaign by CHOICE and other consumer advocates to make it a reality. It provides a last-resort safety net for people who have received a determination from the Australian Financial Complaints Authority (AFCA) in their favour but have been unable to recover the money they are owed.

The collapse of investment funds including Shield Master Fund and First Guardian Master Fund has highlighted concerns about whether victims will receive fair compensation for the full extent of their losses, including lost investment earnings.

The government is now considering changes to the CSLR that could exclude these lost investment earnings from compensation. This could leave some victims significantly worse off.

If you invested in the Shield Master Fund or First Guardian Master Fund and suffered financial losses as a result of financial misconduct, you may be affected by changes to the CSLR. The regulator has funded Super Consumers Australia to create a dedicated investor website to support people who have been affected. To find out if you’re affected, go to https://takeyoursuperback.com/. 

Your eligibility for compensation will depend on your individual circumstances, including the nature of your loss and whether you have received an eligible determination through AFCA.

Sign this petition to add pressure on the government to keep its commitment to victims and ensure they receive fair compensation.

You can also share the campaign with your friends, family and networks and encourage them to add their names.

Together, we can show the government that Australians expect fair compensation for victims of failed financial advice.

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