Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.10B - FINANCIAL SERVICES COMPENSATION SCHEME OF LAST RESORT  

Division 6 - Financial matters  

SECTION 1069M   COSTS FOR FIRST LEVY PERIOD  

Estimate of costs for first levy period

1069M(1)    
The CSLR operator may, by notifiable instrument made at any time before the start of the first levy period, determine for the first levy period and a sub-sector an estimate that is the sum of:

(a)    the specified amount equal to what the CSLR operator reasonably believes (having regard to actuarial principles) will be the total amount of compensation payable under section 1063 :

(i) during the first levy period; and

(ii) for the sub-sector;

other than any such compensation relating to pre-CSLR complaints; and

(b)    the specified amount equal to what the CSLR operator reasonably believes (having regard to actuarial principles) will be the portion of the sum of the following that is attributable to the sub-sector:

(i) the sum of AFCA ' s unpaid fees expected for each of the months ending on or after the accumulation recovery day but before the second levy period, other than any such fees relating to pre-CSLR complaints;

(ii) the capital reserve establishment contribution;

(iii) the CSLR operator ' s expected administrative costs for the first levy period.

Note: A single instrument may determine estimates for several sub-sectors.

1069M(2)    
The notifiable instrument must include each of the amounts referred to in subparagraphs (1)(b)(i) to (iii) .

Reconciliation of costs for first levy period

1069M(3)    
The CSLR operator may, by notifiable instrument and as soon as reasonably practicable after the first levy period, determine the revised costs for the first levy period and a sub-sector by calculating the sum of the following amounts:

(a)    the total amount of compensation paid under section 1063 during the first levy period for the sub-sector, other than any such compensation relating to pre-CSLR complaints;

(b)    the amount equal to the portion of the sum of the following amounts that the CSLR operator reasonably believes (having regard to actuarial principles) are attributable to the sub-sector:

(i) the sum of AFCA ' s unpaid fees for each of the months ending on or after the accumulation recovery day but before the second levy period, other than any such fees relating to pre-CSLR complaints;

(ii) the capital reserve establishment contribution;

(iii) the CSLR operator ' s administrative costs for the first levy period.

Note: A single instrument may determine revised costs for several sub-sectors.