Page 209 - Be Reasonable – Do It My Way , Peter E. Daly AM, My Story

CHAPTER 19 - CONSUMER INTERESTS - THE 1990’S A PERIOD OF MASSIVE CHANGE
The President at the time was Terry Towell (then at Suncorp and later at Allianz). Terry was a great supporter and was also more than willing to invest in the development of long-term industry initiatives and research.
A Financial Services Compensation Scheme
A Financial Services Compensation Scheme is the last piece of the consumer protection jigsaw.
In my opinion, there is a need for the financial services industry to set up a last resort compensation scheme for consumers, as happens in many other products and services and in other parts of the world.
Increasingly I became aware of the number of consumers who had valid claims against their financial institutions, especially AFS licensees and financial planners, but never got paid. Generally speaking the unpaid determinations and court awards or the claims that consumers simply did not pursue, revolved around insolvency and disappearance of licensees or a sheer unwillingness to pay. The failure of professional indemnity insurance as a compensation mechanism is evident. This is particularly the case when Professional Indemnity insurance does not respond to the actual circumstances.
With the support of FOS and some in the general insurance industry, I commissioned a major piece of work to be done by Professional Financial Solutions (PFS). Terry Towell, as the ICA President at the time of the Code development, was the first to provide industry funding to enable me to commission technical work into researching a Financial Services Compensation Scheme. Sadly, to this day, that is unfinished business.
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