Financial Services Regulatory Framework in Relation to Financial Abuse
In June 2024, The Salvation Army provided a submission to the Joint Parliamentary Committee on Corporations and Financial Services inquiry into the Financial Services Regulatory Framework in relation to Financial Abuse.
Our submission drew on the knowledge and experience of The Salvation Army’s Moneycare Financial Counselling Services, as well as service experience, particularly of Family and Domestic Violence Services.
The Submission pointed to the cohorts who were most at risk of financial abuse, particularly victim survivors of intimate partner violence, older Australians, people with disability, people from culturally and linguistically diverse backgrounds, Aboriginal and Torres Strait Islander people, and people exposed to gambling harm. These cohorts are currently insufficiently protected by the financial regulatory framework, and any analysis must examine the impact of regulation upon these cohorts.
The Salvation Army identifies a number of specific regulatory steps that should be taken to improve protection from financial abuse, including regulation of the Buy Now Pay Later sector, improving privacy protections, and calling for government agencies and the financial sector to invest in improved prevention, detection and response pathways for community members who experience financial abuse.
The Salvation Army was invited to appear before the Committee on Friday 9 August in Wagga Wagga, where we were able to discuss the experience on the ground of community members we help who are experiencing financial abuse.