Compensation Scheme of Last Resort

ASIC has issued the levy notices for the Compensation Scheme of Last Resort (CSLR).

What is the CSLR?

If you were not already aware, the CSLR will provide compensation of up to $150,000 to consumers who have an unpaid determination from the Australian Financial Complaints Authority (AFCA) relating to personal financial advice, A determination may be unpaid because the financial institution subject to the determination has become insolvent. 

How much is the Levy?

The CSLR will be funded by levies imposed on parts of the financial services industry, including financial advisers. 

For the 2024/25 year, the levy is $1,186 per financial adviser.

Who is the levy applicable to?

ASIC are using the 2022/23 data on the Financial Advice Register (FAR) to collect the levies.

If you were authorised under Insight Investment Partners on the 30th June 2023, you will need to pay the levy under IIP.

What if I was not authorised under IIP at that time?

If you were authorised under IIP on the 30th June 2023, your levy is not applicable under our licence. Your previous licensee may be in contact to collect the levy, depending on your previous licensee agreements.

When will the levy be collected?

The levy is due on the 18th of September. 

We will recover the levies from the mid-Sept payment runs.

If you have any further questions, please reach out. You can read more about the CSLR by clicking the button below.