COUNCIL OF FINANCIAL REGULATORS –- FINANCIAL CLAIMS COMPENSATION SCHEME
The Council of Financial Regulators has conducted a review of failure and crisis management arrangements in the Australian financial system and has endorsed many of the arrangements currently in place for dealing with distressed financial institutions.
The Council has also recommended that the Government consider introducing a financial claims compensation scheme to enhance current arrangements. The scheme would provide retail depositors in a failed authorised deposit-taking institution immediate access to at least some of their funds and would provide some protection to retail policyholders in insurance companies.
The Governor of the Reserve Bank of Australia, Mr Ian Macfarlane AC, as Chair of the Council, has been asked by the Treasurer to undertake a programme of consultation with the industry to discuss and explain the proposal as outlined in the report and to report back to the Treasurer.
An outline of the proposed scheme is now available on the Treasury website.
For further information on the consultation process, interested parties should contact Dr Philip Lowe , Assistant Governor (Financial System), Reserve Bank of Australia, as follows:
Post: GPO Box 3947
SYDNEY NSW 2001
Phone: 02 9551 8510
Kanwaljit Kaur 02 6263 3103
Brett Wilesmith 02 6263 3289