From www.ifa.com.au: AFCA ombudsman Shail Singh attributed the rising costs of the CSLR scheme to flawed business models within the financial advice sector, particularly those leading to conflicted advice and an increase in consumer complaints.

Singh highlighted that many advisers are recommending self-managed super funds SMSFs to direct client funds into conflicted products rather than in the clients’ best interests.

Additionally, concerns arose over aggressive sales tactics and a lack of diversification in investment strategies, leading to significant advisor liability in cases of product failure.