Eligible applicants for the Compensation Scheme of Last Resort (CSLR) can lodge claims with the body from April 2.

The scheme will provide compensation of up to $150,000 for complainants who have yet to receive funds from Australian Financial Complaints Authority (AFCA) determinations on matters relating to personal financial advice, credit intermediation, securities dealings and credit provision.  

The Federal Government has appointed Jo-Anne Bloch as the scheme’s inaugural chair, joining CEO David Berry and board members Delia Rickard and Kevin O’Sullivan. Transitional board members Andrew Fairley, June Smith and Justin Untersteiner will leave the board following the scheme’s launch.  

Ms Bloch has previously served as CEO of the Financial Planning Association and as a senior partner at Marsh McLennan’s consulting firm Mercer. 

Financial Services Minister Stephen Jones says the scheme’s launch highlights a “commitment to ensuring victims of financial services misconduct have access to redress and compensation. 

“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. 

“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.”  

The 10 largest insurance and banking groups will pay a $241 million levy to help fund the compensation scheme.