The CSLR transitional board has appointed David Berry as its inaugural chief executive and Delia Rickard as a non-executive director.
Mr Berry commenced in his role on Monday morning, bringing more than 25 years of experience in financial services as an executive, non-executive director, and consultant. He was most recently the CEO of Way Forward Debt Solutions, a non-profit that helps people get out of debt.
“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 has worked in a variety of senior roles, primarily at the Australian Competition and Consumer Commission and the Australian Securities and Investments Commission and is an associate member of the Australian Communications and Media Authority.
She is also a current member of the Australian Financial Complaints Authority (AFCA) board and its audit and risk committee.
The CSLR includes a legislative requirement that a director of AFCA must be appointed to the CSLR board, which will see Ms Rickard replace Andrew Fairley on the CSLR transitional board from 1 January 2024, when Mr Fairley’s term on the AFCA board ceases.
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.
The legislation to establish the CSLR was passed in June 2023, with Financial Services Minister Stephen Jones calling it a “significant victory for over 2,000 people who have been waiting for a resolution on their cases”.
The CSLR is meant to facilitate compensation of up to $150,000 to consumers who have an unpaid determination from AFCA relating to personal financial advice, credit intermediation, securities dealing and/or credit provision.
“To ensure the CSLR can commence as soon as possible, the government will fund the costs to establish the body that will operate the CSLR, including funding the costs of the first levy period through to the end of the 2023–24 financial year. The scheme will then be funded by industry for future years,” the minister said.
While the government will cover the establishment costs for the CSLR and the expenses of the initial levy period until the end of the 2023–24 financial year, subsequent funding will rely on levies imposed on specific segments of the financial services industry.
In November, the CEO of the Financial Advice Association Australia (FAAA), Sarah Abood, said that while the body doesn’t oppose the scheme, it is concerned about past costs and the history of misdeeds in the sector, including those inflicted by Dixon Advisory.
“What is the CSLR going to do with a large number of complaints, for example, from Dixon? We are looking into who is going to pay for those,” Ms Abood said.
