The Compensation Scheme of Last Resort (CSLR) is pleased have signed a memorandum of understanding (MOU) with the Australian Financial Complaints Authority (AFCA), setting out how we independently work together to support a fair and efficient financial services system.

The MoU reflects the parties’ intention to maintain a proactive, open and collaborative relationship to effectively perform their respective functions as defined by legislation.

CSLR is committed to transparency and the MOU can be viewed here. The MoU has been signed by Chief Executive Officer of Compensation Scheme of Last Resort Ltd, David Berry and AFCA’s Chief Ombudsman and Chief Executive Officer David Locke.

“CSLR and AFCA have distinct but connected roles in the external dispute resolution framework. To support victims of financial misconduct, it is vital we have clear and transparent procedures in place to support effective and efficient outcomes.” Mr Berry said.

“The CSLR and AFCA have clearly defined, and distinct roles governed by our respective legislation and rules,” Mr Locke said. “Consultation and cooperation will be important in effectively discharging our responsibilities.”

CSLR is an industry-funded scheme offering protection to individuals harmed by the actions of financial institutions. We provide redress to claimants who have secured a favourable determination from AFCA, yet have not received compensation from the financial firm generally due to insolvency. The CSLR is managed independently and operates under parliamentary legislation. It is a vital part of Australia’s financial ecosystem, stepping in to provide relief to victims of financial misconduct, who may otherwise struggle to obtain compensation.

AFCA is an independent, not-for-profit ombudsman service for the financial services sector. Its external dispute resolution service helps consumers and small businesses resolve complaints with financial firms in banking and finance, investments and advice, insurance and superannuation.