The Broker Times
Regulatory Alert

The $137 Million Bill

Why brokers are paying for financial advice failures and what’s coming in 2026. A plain-English breakdown of the CSLR funding shock.

$137.5M
Total Levy Estimate
$126.9M
From Advice Failures
$2.2M
Broker Contribution (FY27)

The Funding Shock

The Compensation Scheme of Last Resort (CSLR) relies on industry levies. The chart below proves the disparity: Financial Advice failures are overwhelming the system, while Credit Intermediaries (Brokers) contribute a fraction.

FY27 Estimated Levy Contribution

Source: CSLR Levy Estimates. Financial Advice has breached its sector cap.

The "Cross-Subsidisation" Explainer

How does an overflow in the "Advice Bucket" spill into the "Broker Bucket"? Use this interactive guide to understand the "Waterfall" mechanism.

$20M Cap
Brokers
Advisers

Current State: Brokers pay ~$2.2M (Safe). Advisers are near the limit.

The "Unquantified" Risk

Estimates are one thing. Reality is another. The potential collapse of funds like Shield Master and First Guardian represents a "Black Swan" event for the industry.

Status: Uncomfortably High

  • ✔ Brokers currently within the $20M cap.
  • ⚠ Advice sector levy is $126.9M.
  • ℹ Government is momentarily absorbing legacy costs.

What Brokers Must Do Now

Don't wait for the invoice. Prepare your business.

1

Budget for 2026

Update your P&L. Do not assume the current $2.2M sector total is permanent. Build a buffer.

2

Support Advocacy

Support MFAA & FBAA lobbying to "ring-fence" broking. We shouldn't subsidize other professions.

3

Stay Informed

Subscribe to The Broker Times for updates on the "unquantified" risks as they evolve.