7 December 2023
The Compensation Scheme of Last Resort (CSLR) Transitional Board today announced two key appointments ahead of the scheme’s scheduled commencement in April 2024.
They are David Berry as the inaugural Chief Executive Officer (CEO) and Delia Rickard as a Non-Executive Director.
Mr Berry commences as CEO on Monday 11 December 2023. Mr Berry brings extensive experience as an executive, non-executive director and consultant who has made significant contributions to the financial services and consumer sectors through his strong leadership and change agenda.
“David will bring a unique set of skills and experience to this role which balance both industry and consumer perspectives,” a statement from the CSLR’s Transitional Board 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.”
Mr Berry said: “The CSLR will play a very important role in helping victims of financial misconduct access redress and I very much look forward to contributing to this important work.”
Ms Rickard is a widely respected and accomplished executive, with extensive public service experience and a passion for consumer protection. She has worked in a variety of senior roles, primarily at the Australian Competition and Consumer Commission and the Australian Securities and Investments Commission.
She is also an Associate Member of the Australian Communications and Media Authority. Ms Rickard has significant experience in both legal and regulatory compliance as well as risk management and is a current member of the AFCA Board and its Audit & Risk Committee.
Ms Rickard will replace Andrew Fairley on the CSLR Transitional Board from 1 January 2024, when Mr Fairley’s term on the AFCA Board ceases. This appointment meets the CSLR legislative requirement that a Director of AFCA must be appointed to the CSLR Board.
The Transitional Board said, “The Board is confident that both Mr Berry and Ms Rickard bring a significant level of skill and expertise to CSLR. 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.”
In accordance with legislation, the Ongoing CSLR Board will also include an independent Chair to be appointed by the Minister, and a Director with actuarial experience appointed by the Transitional Board.
Legislation to establish the CSLR was passed in June 2023 and the scheme is scheduled to start receiving claims in April 2024.
The CSLR is designed to provide compensation for eligible complainants who have a determination in their favour from Australia’s financial ombudsman service, the Australian Financial Complaints Authority (AFCA), but the financial firm has become insolvent or cannot pay. Compensation of up to $150,000 may be available if a complaint falls into one of four financial sub-sectors specified in the legislation:
As operator of the scheme, CSLR Ltd will be responsible for considering applications for compensation.
You can read more about the CSLR here.
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25 September 2023
The Federal Government has authorised Compensation Scheme of Last Resort Limited (CSLR Ltd) as operator of the new financial services CSLR, which is expected to start accepting claims in April 2024.
The CSLR will provide up to $150,000 in compensation to eligible consumers who have a relevant Australian Financial Complaints Authority (AFCA) determination in their favour that remains unpaid.
Relevant determinations relate to:
As operator, CSLR Ltd will be responsible for considering applications for compensation and estimating scheme costs to be levied on industry each year.
CSLR Ltd looks forward to working with the Government and stakeholders to implement this important reform in consumer protection.