Compensation Scheme of Last Resort
The Compensation Scheme of Last Resort (CSLR) is an independent, not-for-profit company which commenced operations on 2 April 2024. Visit the CSLR website for more information about the scheme.
The CSLR will provide compensation of up to $150,000 to consumers who have an unpaid determination from the Australian Financial Complaints Authority relating to personal financial advice, credit intermediation, securities dealing or credit provision, and meet other eligibility criteria. A determination may be unpaid because the financial institution subject to the determination has become insolvent.
From 1 July 2024, the CSLR will be funded by levies imposed on parts of the financial services industry. Under the CSLR legislative framework:
- The CSLR operator is responsible for determining the total costs for the leviable period; and
- ASIC is responsible for issuing levy notices and collecting levy payments.
The information below is for industry participants required to pay CSLR levies.