The Senate Economics Legislation Committee has recommended that bills relating to the Financial Accountability Regime (FAR), Financial Sector Reform, Financial Services Compensation Scheme of Last Resort Levy (CSLR) for provisions and collections be passed.

The committee made the recommendation after a public consultation that included submissions from a range of stakeholders.

The bills were introduced in the House of Representatives and read a first time on October 28 last year and the Senate later referred the provisions of the bills to the committee for inquiry and report by February 15 this year.

The proposed changes are recommendations from the Hayne royal commission.

“The committee notes the broad support for the… bills expressed by submitters to the inquiry,” the report said.

“The translation of the royal commission’s recommendations into tangible legislation to establish the CSLR has been warmly welcomed.

“The committee agrees that the bills are vital to improving the operating culture of entities in the financial services sector and, will ensure increased transparency and accountability across the banking, insurance and superannuation industries and will overall, improve protections and access to redress for consumers.”

The report says the committee notes there are key concerns in relation to the scope and design of the CSLR but believes the proposed measure will work.

“The committee believes that the proposed compensation cap and levy will ensure the long-term sustainability of the scheme,” the report said.

“Importantly, that it correctly balances the liabilities for industry, the provision of just compensation to claimants from scheme contributors and, restoring consumer confidence in the financial services sector as a whole.”

Consumer advocate Choice has responded to the committee’s report in relation to the FAR and CSLR.

“These landmark reforms are two of the most important recommendations of the banking royal commission,” CEO Alan Kirkland said.

“We hope to see these bills debated in the House of Representatives ... so that they can be passed in this term of Parliament.”