MEDIA RELEASE

EMBARGOED 00:00 TUESDAY 17 AUGUST 2021

Government’s compensation scheme will leave financial victims out in the cold

“Devastated” victims lose hope as Government waters down Royal Commission commitments

The Federal Government’s proposed compensation scheme of last resort fails to deliver on its public commitments to victims of financial scandals, according to consumer group CHOICE.

“When the Government released its response to the banking royal commission, it gave victims of financial scandals hope that they would finally be compensated. For many victims, those hopes have now been dashed,” says CHOICE CEO Alan Kirkland.

“The Government committed to a scheme that could pay over $540,000 in compensation, as recommended by the royal commission, covering a broad range of financial scandals.”

“The proposals now released by the Government will disappoint victims by capping compensation at $150,000 and failing to cover compensation from financial scandals in areas like managed investment schemes and funeral insurance. This will see many people go uncompensated.”

Speaking to CHOICE, victims of the collapsed Sterling First investment scam in WA have told the consumer advocate that they feel let down by the Government.

Annette Taylor, a 69 year old from Western Australia lost her entire nestegg of $220,000 and now lives on the age pension. She told CHOICE about her experience following the collapse of Sterling First:

“It's just shocking, and the government has done absolutely stuff-all to help us. It has destroyed me. I just want the money back and to get on with my life.”

Full media release available in PDF below:

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Victims of the Sterling First investment scheme collapse share their stories.

Case studies are WA based - contact Alan Fardoe 0402 077 058 for more information.