From: Pink, Amelia (Sen N. Xenophon) [mailto:Amelia.Pink@aph.gov.au]
Sent: 01 September 2017 16:56
To: 'scribepj@bigpond.com.au' <scribepj@bigpond.com.au>
Subject: Thank you

Dear Phil

Thank you for your letter to Nick Xenophon dated 17 August 2017, regarding a Royal Commission into the banking and financial services industry with only two Terms of Reference. I am responding on his behalf and have passed on your correspondence to Nick and his senior advisors for their reference and consideration.

As you may be aware Nick has previously called for the Financial Ombudsman Service (FOS) to be disbanded and replaced with a government body. Nick supports a Royal Commission into the banks and will be considering a statutory compensation scheme for victims of bad financial advice, in the wake of scandals that have engulfed the financial services sector that has destroyed the financial security of thousands of Australians.

The scheme, to be modelled on proposals from the Victorian Consumer Action Law Centre, and other consumer organisations, would:

• Provide for compensation for victims of financial misconduct where all other avenues of redress have been exhausted;
• Increase civil and criminal penalties for misconduct causing losses by investors;
• Require increased levels of insurance for financial advisers commensurate with their client base and risk involved;
• Enhance the role of the financial ombudsman service by ensuring its awards are paid; and
• Require a modest levy on financial institutions to fund the scheme, and if necessary a contribution from the Commonwealth for past victims of financial misconduct.

Thank you again for writing to Nick.

Kind regards

Milly Pink

Correspondence Officer

Office of Nick Xenophon | Independent Senator for South Australia

(Electorate Office) Lvl 2/31 Ebenezer Place, Adelaide | TEL: 08 8232 1144

www.nickxenophon.com.au

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