ÐÓ°ÉÂÛ̳has drafted a submission to the Senate Economics References Committee Inquiry into Sterling Income Trust.
The Sterling Group collapse has caused homelessness and severe financial hardship for
retirees and pensioners across the country.
ÐÓ°ÉÂÛ̳called for the Federal Government's proposed compensation scheme of last resort ('CSLR') be expanded to include managed investment scheme collapses. A broad-based, industry-funded CSLR that includes managed investment schemes will allow most Sterling Group victims to access compensation.
ÐÓ°ÉÂÛ̳also called for ASIC to be a more proactive and responsive regulator. We recommend that ASIC use its full suite of regulatory tools including issuing timely public warning notices and their new product intervention powers as soon as early reports of misconduct emerge. ÐÓ°ÉÂÛ̳also recommend that ASIC be granted a new directions power to compel a financial services licensee to change its conduct, including preventing it from taking on new clients.
Download submission (PDF)
Related content
- Overdue government compensation scheme leaves many unprotected
- Collective call for a compensation scheme that covers all financial victims
Media releases
- September 2021: "We are losing hope": WA victims on watered down compensation scheme
- August 2021: Government's compensation scheme will leave financial victims out in the cold
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