Financial Claims Scheme
02 June 2008
Credit unions and mutual building societies look forward to engaging with the Government on establishing a Financial Claims Scheme (FCS) even though the scheme may never be used.
Treasurer Wayne Swan announced today that the Government will legislate to set up a FCS to assist depositors and insurance policyholders in the unlikely event that a financial institution fails.
"Abacus has been engaged in consultations with Treasury, APRA and the Reserve Bank on the design of such a scheme at various times since the HIH Royal Commission in 2003," said Abacus CEO Louise Petschler.
Abacus – Australian Mutuals is the industry body for Australia’s credit unions and mutual building societies. There are 142 credit unions and mutual building societies in Australia with more than 4.5 million members and total assets of around $65 billion.
"Depositors in Authorised Deposit-taking Institutions (ADIs) such as banks, building societies and credit unions are already protected by the depositor preference provisions in the Banking Act 1959 and stringent prudential standards enforced by APRA.
"We support well designed measures to provide additional certainty and protection for consumers."
Contact:
Louise Petschler
Chief Executive Officer
02 8299 9036; 0408 239 226
Mark Degotardi
Head of Public Affairs
02 8299 9053; 0419 998 201
Abacus - Australian Mutuals represents 133 credit unions and 9 mutual building societies with 4.6 million members. Collectively, mutual ADIs have around $65 billion in assets and are the second largest household deposit-taking group in Australia.
