CALI calls for government to help fund CSLR

The Council of Australian Life Insurers (CALI) is calling on the government to help fund the burgeoning Compensation Scheme of Last Resort (CSLR) to stop putting "undue" pressure on Australia's risk advisers.

The government has announced the shared responsibility of the scheme across all financial sub-sectors, including the superannuation sector, late last year, which received mixed reactions from the industry, including the Association of Superannuation Funds of Australia (ASFA) and the Financial Advice Association Australia (FAAA).

However, despite the current spread, advisers are expected to expense a whopping $4000 in levies in the upcoming financial year.

The situation is rather dire for risk advice due to the lack of new entrants into the niche sector, with only some 185 risk specialists currently available in Australia.

Addressing the growing concerns of the viability of risk advice, CALI chief executive Christine Cupitt argued the CSLR levy should be spread across the broader financial services sector and the government, rather than saddling advisers with a "disproportionate" burden.

"Risk advisers aren't a threat to Australians' savings, instead they help them access peace of mind and financial security when they need it most," Cupitt said.

"The scheme is very important for victims of financial misconduct, and the government needs to take a fairer approach and make sensible changes to the design of the scheme to ensure it remains sustainable in the long run."

Cupitt said the government delivering on its promises for the full Delivering Better Financial Outcomes (DBFO) reforms would be significant for fighting financial misconduct.

Notably, CALI is attending a round table with assistant treasurer and minister for financial services Daniel Mulino, along with consumer groups and industry stakeholders to discuss consumer protection and the sustainability of the CSLR.

Further, Mulino spoke at the Stockbrokers and Investment Advisers Association (SIAA) Conference on Tuesday morning providing an update on both the CSLR and DBFO reforms, stating that they need "holistic" approach when assessing these reforms without applying unnecessary regulations.