Sarah Abood

Last week saw revelations of a blow-out in the estimated costs for the Compensation Scheme of Last Resort (CSLR) for the 25/26 financial year, and the announcement of a Treasury review into the scheme.

Following this, the FAAA has called for urgent progress on the CSLR/Dixon Advisory Senate Economics Committee inquiry and urged the Chair and Deputy Chair to call witnesses. 

Saturday 1 February 2025 marked three months since the deadline for submissions to the Senate inquiry, and yet no witnesses have been called and no appearance dates set. 

FAAA CEO Sarah Abood says: “The events of last week should not be an excuse to delay the Senate inquiry in Dixon Advisory. 

“The case had been made for the critical importance of this inquiry, and stakeholders have provided multiple submissions. There is much that still needs to be investigated. Senators Bragg and Walsh should call witnesses for this inquiry immediately. 

“We have continued to unearth problems not only at Dixon Advisory but also at other firms where a variety of problems have arisen. 

“Advisers are rightly angry that it now appears as though there is a continued effort to not delve into these issues, and to avoid a genuine investigation of where this has all gone wrong.  It is particularly critical to progress with this investigation now, in light of the estimates that the financial advice profession could end up paying an additional $50 million for CSLR next financial year, on top of the $20 million sector cap.  

“The FAAA continues to advocate for members’ interests and has been calling on the government to fix problems with the CSLR since before it was legislated.”  

Ms Abood adds, “If anyone is in any doubt that there are problems with the way that the CSLR has been designed, and the potential implications emanating from not just Dixon Advisory but other firms, then they need only to read the submissions that have already been made.  

“Much of the work to determine the problems with the CSLR has already been done, and it must not go to waste,” Ms Abood says. 

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