The Australian Financial Complaints Authority has given some indication of the amount of claims facing the proposed Compensation Scheme of Last Resort, with the release of an update on paused complaints and unpaid determinations impacted by insolvency. AFCA has 4853 open complaints involving 53 insolvent financial firms. All have been paused. Consumer claims in these complaints total more than A$691 million. More than 1800 of these complaints have been lodged against Dixon Advisory and Superannuation Services, which went into administration in January last year. In addition, there are 306 unpaid AFCA determinations involving 28 insolvent firms worth $14.7 million. AFCA has cautioned that individual complaints may or may not be eligible for compensation from the Compensation Scheme of Last Resort. “AFCA will only be able to fully assess the impact of the CSLR and its relevance to paused complaints once the scheme is legislated. We will review all relevant complaints as soon as that occurs,” it said.  A bill to establish the Financial Services Compensation Scheme of Last Resort was introduced into the House of Representatives this week.  The CSLR will provide compensation to consumers where they have an Australian Financial Complaints Authority determination in their favour and where the relevant financial institution has not paid the consumer in accordance with the determination. Compensation under the CSLR is intended to be available for eligible complaints made to AFCA since AFCA commenced operations in November 2018. The CSLR will be funded through industry levies. Compensation will be capped at $150,000, whereas AFCA can order compensation up to $540,000. It is likely that in a large number of cases CSLR compensation will not match the amount awarded in the AFCA determination. Another limitation is that the CSLR will not cover all the areas where AFCA has jurisdiction. To be eligible for CSLR compensation the AFCA determinations must involve credit activity, financial product advice and dealing in securities. Managed investment schemes are not covered. Sixty-two of the unpaid determinations and 272 of the paused complaints involve complaints against managed investment scheme operators. Claims in these complaints are worth more than $34 million.