A $50 million blowout in compensation claims under a scheme introduced after the Hayne royal commission poses an “existential threat” to the financial planning industry, advisers say.
The operator of the Compensation Scheme of Last Resort, which Labor set up in 2023, said on Friday about $70 million would need to be paid out in 2025-26 to victims of bad financial advice provided by failed operators.
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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
