From www.investmentlawwatch.com: The Compensation Scheme of Last Resort in Australia faces significant concerns as its projected levy for 2025/26 is estimated to reach AU$70 million, far exceeding the AU$20 million cap.

Key issues include the failures of prominent advice firms leading to high claim amounts, insufficient initial funding, and systemic flaws in the scheme’s design that undermine its purpose of enhancing trust in the financial system.

A comprehensive review has been announced by the Treasury in response to these challenges and the growing liabilities the CSLR will impose on the financial advice sector.