The transitional board of the Compensation Scheme of Last Resort (CSLR) has appointed former UniSuper chief executive Kevin O’Sullivan.
Effective immediately, O’Sullivan will join as a non-executive director ahead of the scheme’s commencement in April 2024.
He will replace June Smith, deputy chief ombudsman of the Australian Financial Complaints Authority.
As well as O’Sullivan and existing member Delia Rickard, the three-person board is looking for an independent chair who will be appointed by the federal government ahead of the April commencement.
O’Sullivan was the chief executive of UniSuper from 2013 to 2021 when he was replaced by Peter Chun.
During his time on the fund, UniSuper grew its funds under management to $100 billion and navigated it during the COVID-19 pandemic and the early release of superannuation.
In 2020, he was named as the Fund Executive Association Limited’s (FEAL) Fund Executive of the Year.
Prior to joining UniSuper, he spent more than 20 years at Russell Investment Group as a director in the actuarial and benefits consulting team. The CSLR board said this actuarial experience is a benefit as it meets legislative requirements for a board member to have actuarial qualifications.
A statement from the CSLR board said: “Kevin brings extensive financial sector experience, both as an executive and as a director, along with analytical acumen, strategic thinking and integrity.
“We look forward to the contribution he will make as a founding member of the board, which will take over from the transitional board ahead of the CSLR’s commencement. His significant actuarial expertise will greatly assist the board in its role determining estimates of claims, fees and costs for annual levies.”
O’Sullivan said: “The CSLR is an important addition to the consumer protection framework in Australia. I very much look forward to playing a role in its establishment.”
Last week, the CSLR announced the estimated sum for the initial levy will be $241 million and includes provision for the majority of claims involving Dixon Advisory and Superannuation Services (DASS).
The funding will pay for compensation claims of up to $150,000 to eligible consumers who have been the victims of financial misconduct relating to personal financial advice, credit intermediation, securities dealing or credit provision. The complaint must also fall within the rules of AFCA, and the consumer must have received a determination in their favour which awards compensation.
