Review of compensation arrangements for consumers of financial services - Consultation Paper
As part of the Future of Financial Advice (FoFA) reforms announced on 26 April 2010, the Government commissioned Richard St. John to undertake a review to consider the need for, and costs and benefits of a statutory compensation scheme. This review was announced in response to recommendation 10 of the report by the Parliamentary Joint Committee on Corporations and Financial Services Inquiry into financial products and services in Australia.
The release of the consultation paper by Richard St. John is a key step in his preparation of recommendations to Government. Mr St. John draws attention to a number of issues on which comment is invited (raised at the end of Chapters 2 to 5). It also seeks reactions to the preliminary observations made in Chapter 5 though respondents should feel free to address other issues as well.
The consultation paper provides information, frames issues and raises questions on the need for, and costs and benefits of, a statutory compensation scheme for clients who suffer damage or incur loss as a result of misconduct by persons with whom they have dealt in the financial services sector. In particular:
- Chapter 1 deals with the context and scope of the review. It also provides background on the overall regulatory framework for financial services and the regulatory philosophy on which it is based.
- Chapter 2 describes the current compensation arrangements within that regulatory framework.
- Chapter 3 addresses the operation of those compensation arrangements in practice.
- Chapter 4 provides a comparison with compensation arrangements in other countries and industry sectors.
- Chapter 5 provides some preliminary observations and draws out issues for further consideration.
- Attachment A provides a summary of relevant regulations.
- Attachment B provides a summary of compensation arrangements in the EU, Canada and the US.
|Consultation Paper (consolidated)||1.2MB||-|
Submissions for this consultation closed on Wednesday, 1 June 2011.
A total of twenty-eight submissions have been recieved in response to Richard St. John's consultation paper Review of Compensation Arrangements for consumers of financial services. Five submissions are confidential, and the remaining twenty-three are public, which are listed below.
|ACTEK Superannuation Pty Ltd||32KB|
|Association of ARP Unitholders Inc||3.5MB|
|Association of Superannuation Funds of Australia||87KB|
|Australian Bankers' Association Inc||74KB|
|Financial Ombudsman Service||561KB|
|Financial Planning Association of Australia||212KB|
|Financial Services Council||1.3MB|
|Hayden Financial Services||105KB|
|Insurance Council of Australia||98KB|
|Law Council of Australia||2.3MB|
|Liability Reform Steering Group||417KB|
|National Information Centre on Retirement Investments Inc (NICRI)||865KB|
|National Insurance Brokers Association||346KB|
|Professional Investment Services||546KB|
|RADE Provident Fund||332KB|
|Slater & Gordon||137KB|
|Superannuation Complaints Tribunal||58KB|
|Van Eyk Research Pty Ltd||166KB|
The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or the Treasury or Richard St. John.