The TCF Board has considered the decision reached at the recent meeting of Ministers for Consumer Affairs to approve the Travel Industry Transition Plan (TITP).
The full text of the decision can be found at this link: http://www.consumerlaw.gov.au/content/CAF/meetings/downloads/003.pdf.
The decision, when implemented, will see the cessation of TCF prudential supervision of TCF participants (that is, the Annual Financial Review will no longer be required), the repeal of travel agents legislation in 2014, the cessation of TCF compensation where travel agents collapse, and the winding up of the TCF by 2015.
The TCF will be replaced by an industry accreditation scheme and other initiatives, and consumer protection will be dealt with under general consumer protection laws, and industry mechanisms such as credit card chargebacks.
The TCF Board has been advised that a new Trust Deed is being prepared, which will replace the current Trust Deed.
Until that time, the TCF Board has decided that it has no option but to continue to operate under the current Trust Deed. This means that current arrangements affecting TCF participants will continue for the time being.
For TCF participants who have recently joined the TCF, and for those who join prior to the TITP being implemented, the current contribution and fee arrangements will remain in place. However, when change occurs, the Board has decided it will review recent past arrangements and fees paid by agents, to see whether some financial recognition by way of rebates would be in order.
The Board will keep TCF participants informed of developments on a monthly basis.
Source = Travel Compensation Fund