Big super funds and SMSFs could have to pay compensation | The Business | ABC NEWS

By ABC News (Australia)

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Assistant Treasurer Daniel Mulino is looking to revamp funding for the Compensation Scheme of Last Resort (CSLR), saying that large super funds, as well as people with self-managed super funds, could be asked to chip in. Mr Mulino says with more investors losing money through First Guardian, Shield investment funds and other high-profile cases, the CSLR was facing "huge pressure", far beyond what was originally anticipated when the scheme was established. Currently, the CSLR is funded by a levy on financial advisers. Mr Mulino wants to widen the funding base. He is considering a three-tier "waterfall model" where future shortfalls would be allocated based on a sector's alleged connection to the underlying losses. There is now more than a $170 million shortfall in the amount required to fund victims making claims under CSLR. The scheme was introduced after the banking royal commission and was designed to assist victims of financial misconduct when all other avenues for compensation

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