The government has recognised the massive red tape burden that has been placed on financial planning firms.
It has been one of their priorities to reduce this Red Tape. We know because they tell us all the time.
One way of reducing this red tape has been to introduce a new Compliance Scheme, (with a fee of course).
So we now have the Compensation Scheme of Last Resort (CSLR). Apparently, this is to fund victims of financial misconduct. We are a little confused as we believe there are already a few of these schemes in place such as the Australian Financial Complaints Authority (AFCA), our own professional indemnity (PI) and the ASIC Supervisory Cost Recovery Levy. However, in the interest of red tape production the government has seen fit to introduce another.