AFCA, or the Australian Financial Complaints Authority, which is the country’s dispute resolution authority, has confirmed that they support the industry-funded compensation scheme which will be called “Compensation Scheme of Last Resort” (CLSR) and which will cover all financial services. The CLSR is meant to ensure that customers and small businesses will be compensated if a financial service provider engages in misconducted and cannot pay them. According to AFCA such a compensation scheme will help restore trust and confidence in the wider financial system of the country. Personally, I do agree with that notion in principle, such a compensation scheme seems to be one of the reasons why people put their trust in the British regulator FCA, for example. Still, it remains to be seen how efficient the Australian version will be.
%% Don't know many of the details,[ it probably will NOT cover bitcon or Libra........ I quess]; in US, FDIC [bank insurance+ other brokerage insurance] has worked well, certain restrictions apply.