The Financial Counselling Industry Fund, aimed at expanding assistance for people enduring hardship, will be chaired by Peter Kell, a former Australian Securities and Investments Commission deputy chairman and Choice CEO.

The new fund is supported by a $33 million commitment over three years from sectors including insurance, banking, energy, betting and telecommunications, and is in addition to almost $50 million in federal government financial counselling support and state and territory funding.

“The Financial Counselling Industry Fund is an innovative model that involves both the financial counselling sector and industry stakeholders,” Mr Kell said. “It has the potential to support much greater access to vital financial counselling services for the community.”

The inaugural board also includes Greg Tanzer, nominated by the financial counselling sector, and Vanessa Beggs, nominated by industry stakeholders. They will be joined by four more directors.

Financial Counselling Australia, tasked with establishing and implementing the oversight body, says next steps involve the recruitment of a CEO and other staff, with industry money expected to start rolling out by the end of this year.

The Industry Funding Model for Financial Counselling was launched by the Federal Government, industry and the financial counselling sector in November after a review led by Louise Sylvan.

The review, in response to the Hayne royal commission, found funding is the largest impediment to more people in hardship accessing counselling, and industry should help to address this.

“Financial counsellors play an important role in assisting people facing financial hardship, especially when the unexpected happens like catastrophic weather events,” Insurance Council of Australia CEO Andrew Hall said last week.

“This industry co-funding model will be important in supporting the financial counselling sector and the National Debt Helpline, so it can continue to support customers in need, helping them get back on their feet after these events.” 

The Federal Government is providing seed funding of $1.5 million to the project.