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As the consultation phase concludes, the industry awaits Financial Services Minister Daniel Mulino’s decision on funding responsibility. CSLR chief executive David Berry emphasized the urgency of a decision, stating that without special levy funds by November, compensation payments will halt except for pre-CSLR obligations.
Berry noted that even after a ministerial decision, parliamentary approval is required, including a 15-sitting-day disallowance period. The current legislative schedule leaves only 15 sitting days in 2025, making it challenging to receive special levy funds before the new financial year.
He explained that while the CSLR will continue its operational preparations, payments to claimants cannot proceed without the funds. "We have to follow the legislative process, and this requires due diligence," Berry commented, highlighting the lack of quick solutions.
A significant concern among advisers is the possibility of bearing the cost of the special levy. Although this remains an option, other funding solutions are being considered. Berry expressed openness to discussions that ensure the scheme’s sustainability, acknowledging the minister's prerogative in this decision-making process.
Regarding the potential inclusion of certain products in the CSLR to offset costs from product failures, Berry noted this as a complex yet viable path. The assessment of how much responsibility products and advisers should bear remains challenging. He indicated support for such changes should the minister decide to proceed.
The unfolding situation underscores the CSLR's pending financial obligations and the pivotal role ministerial decisions play in shaping future resolutions. With considerable uncertainties ahead, stakeholders are encouraged to stay informed of ongoing developments in the scheme's funding mechanisms.
Published:Thursday, 11th Sep 2025
Source: Paige Estritori
