Following the release of the public discussion paper on establishing a Compensation Scheme of Last Resort, AFCA reconfirms its strong support for creating an industry-funded scheme of last resort.

AFCA and its predecessor schemes have long advocated for a compensation scheme of last resort. It is vital that this scheme is appropriately funded and governed and has 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 believes the establishment of a compensation scheme of last resort plays a significant role in restoring trust and confidence in the wider financial system.

AFCA will continue to engage with the government and other stakeholders on the establishment of an appropriate compensation scheme of last resort.

Published: 30 December 2019

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About AFCA

The Australian Financial Complaints Authority (AFCA) is a non-government ombudsman service providing free, fair and independent help with financial disputes. It is a one-stop-shop for consumers and small businesses who have a dispute with their financial firm, over things such as banking, credit, insurance, advice, investments or superannuation. Where an agreement cannot be reached between parties, AFCA can issue decisions that are binding on financial firms.