The Compensation Scheme of Last Resort’s (CSLR) transitional board has appointed its first chief executive alongside a non-executive director.
David Berry has been named as the inaugural chief executive and will commence on 11 December 2023.
The incoming CEO has worked in the financial services industry since 2006. Most recently, Berry has been the chief executive of Way Forward Debt Solutions since 2018. He is also a non-executive director at the Consumer Action Law Centre.
There is also a CSLR legislative requirement that an AFCA director must be appointed to the CSLR board so Delia Rickard will also join in January 2024 as a non-executive director.
She will replace Andrew Fairley when Fairley’s term on the AFCA board ends. Fairley was an interim CSLR director, as well as AFCA deputy chief ombudsman June Smith and AFCA chief operating officer Justin Untersteiner.
Rickard is a current member of the AFCA board and has also worked as a senior executive at ASIC and the Australian Competition and Consumer Commission (ACCC).
“David will bring a unique set of skills and experience to this role which balance both industry and consumer perspectives,” the statement said.
“He has driven large-scale organisational, technological and process transformations in the financial services industry. He is also an advocate of positive change for the community, in particular protection of those most vulnerable to financial harm or disadvantage.”
The board expressed its confidence towards both appointments in bringing a significant level of skill and expertise to the Scheme.
“Their contribution will ensure the delivery of a valued compensation service which raises confidence in the external dispute resolution framework and, more broadly, the financial services industry.”
The ongoing CSLR board will also include an independent chair to be appointed by the Minister, as well as a director with actuarial experience.
The CSLR is designed to provide compensation for eligible complainants who have a determination in their favour from AFCA, but the financial firm has become insolvent or cannot pay.
Legislation to establish it was first passed in June 2023 and it will begin receiving claims in April 2024.
Compensation of up to $150,000 may be available if a complaint falls into one of four financial sub-sectors specified in the legislation:
- Personal financial advice
- Securities dealing for retail clients
- The provision of credit (where a financial firm provides funds) or
- The arranging of credit (where someone like a mortgage or finance broker arranges funds).
Yet another unnecessary government department.