MEDIA RELEASE

FRIDAY 10 SEPTEMBER 2021

“We are losing hope”: WA victims on watered down compensation scheme

CHOICE has written to WA politicians calling on them to protect forgotten victims of Government’s financial compensation scheme

CHOICE has written to Western Australian federal parliamentarians asking them to assist victims of the Sterling First collapse.

“The Federal Government’s proposed compensation scheme will abandon too many victims of financial misconduct. Victims of financial crime deserve better.” says CHOICE CEO Alan Kirkland.

“The Government’s response to the Banking Royal Commission provided hope to victims of financial misconduct that they would receive compensation. Now, for many, that hope has been dashed.”

In July 2021, the Federal Government released draft laws on the Compensation Scheme of Last Resort (CSLR). CHOICE joined nine other community sector organisations including the Consumer Credit Legal Service (WA) calling for the scheme to be significantly bolstered.

“The scheme proposed by the Government will leave too many victims who have lost money uncompensated. It will only apply to five financial products and services, leaving out managed investment schemes such as Sterling First. This is incredibly disappointing for victims of managed investment scheme collapses” says Mr Kirkland.

CHOICE petition calling on Treasurer Josh Frydenberg to pass a compensation scheme with no loopholes: www.choice.com.au/strongerbankingprotections

Full media release and open letter available in PDF below

Editor’s notes:

• The Federal Government committed to introduce the Compensation Scheme of Last Resort and the Financial Accountability Regime into the House of Representatives by 30 December 2020.

• On 16 July 2021, the Australian Federal Government released its proposal for the Compensation Scheme of Last Resort.

• CHOICE authored a joint policy submission on the CSLR of behalf of 9 community sector organisations, including the Consumer Credit Legal Service (WA).

• The Federal Government has announced their proposal to introduce and pass the CSLR legislation in the Spring sittings of 2021.

Open letter, media release, and joint policy submission on the CSLR

Videos

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

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