From: Pink, Amelia (Sen N. Xenophon) <Amelia.Pink@aph.gov.au>
Sent: 01 September 2017 16:56
To: '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
The information
contained within this email may be confidential and/or legally privileged. If
you are not the intended recipient, access to it is unauthorised and any
disclosure, copying, distribution or action taken or omitted to be taken in
reliance on it is prohibited and may be unlawful.