Bank compo limit needs to rise

External dispute resolution schemes will be encouraged to adopt caps on the level of compensation payable rather than subjecting complaints to matters that fall within a set monetary limit. The Australian Securities and Investments Commission yesterday endorsed an earlier recommendation of the Productivity Commission on this point. In a consultation paper on reviews of internal and external dispute resolution schemes ASIC suggested that the cap on compensation be lifted to $280,000 from $250,000, a level set in the 1990s. This cap (actually a monetary limit) already applies to the Financial Industry Complaints Service, one of the schemes now subsumed by the Financial Ombudsman Service.

Source: The Sheet

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