The Australian Financial Complaints Authority (AFCA) has backed the proposed creation of a Compensation Scheme of Last Resort, in a bid to restore trust and confidence in the wider financial system.
AFCA reconfirmed its strong support of the industry-funded scheme, highlighting the need to appropriately fund and govern the scheme, which it also said should provide coverage across all financial services.
“A scheme will ensure consumers who have experienced loss due to the conduct of a financial firm and have subsequently been awarded compensation as part of an external dispute resolution process, will receive that compensation,” AFCA said in a statement.
AFCA said it will continue to engage with the government and other stakeholders on the establishment of an appropriate compensation scheme of last resort.
