A former CEO of the Financial Planning Association, Jo-Anne Bloch, has been appointed as the inaugural independent Chair of the Compensation Scheme of Last Resort for an initial term of three years.
A statement from Minister for Financial Services, Stephen Jones, announcing that from 2 April 2024 consumers will be able to lodge claims for compensation under the CSLR with payments to follow for eligible consumers, named Bloch as the inaugural chair of CSLR Ltd, which will operate the scheme.
Jones says Bloch is an experienced leader in financial services ”… and in particular financial advice, with extensive experience in engaging government and in the not-for-profit sector, and is well equipped to guide the scheme at its inception and beyond.”
Bloch left the FPA in 2010 after nearly four years as CEO.
In his statement Jones notes that the CSLR will provide compensation of up to $150,000 to eligible consumers who have an unpaid determination from AFCA relating to the provision of personal financial advice, credit intermediation, securities dealing and credit provision.
He says the CSLR is intended to provide compensation where the misconduct is by a financial services firm that was licensed to provide the relevant product or service.
“The Government will ensure this intent is met through amendments to the CSLR legislation in due course to provide further certainty to consumers about the scope of the CSLR.”
He says as an interim step, amendments have been made to AFCA’s authorisation “…so that, to the extent possible, complaints that may be eligible under the CSLR are progressed only if the financial services firm was licensed to provide the relevant product or service.”
Consequential changes to AFCA’s Rules will be required to implement the amendment to AFCA’s authorisation, Jones says.
