Financial Ombudsman Service (FOS) submits recommendations regarding Australia’s external dispute resolution and complaints framework.
The Financial Ombudsman Service has released its submission to the independent review of external dispute resolution (EDR) schemes, which is being led by Professor Ian Ramsay. The FOS submission to the independent Review committee outlines a case to retain and build upon the existing Financial Ombudsman model, within the scope of its current jurisdiction.
FOS has stated in a recent media release that the submission outlines recommendations to remove duplication, expand the range of disputes able to access EDR, reduce complexity, and improve consumer certainty as part of its submission to the review, chaired by Professor Ian Ramsay.
FOS Submission: Key Details
- the merging of the Credit Industry Ombudsman (CIO) into FOS
- improving the operating arrangements between FOS and the Superannuation Complaints Tribunal (SCT) including co-location and sharing of back office support functions
- expansion in the small business jurisdiction based on the outcomes of FOS’s current consultation
- a review of other monetary limits to better reflect current economic realities
- increase in some powers
- a compensation scheme of last resort to deal with the issue of unpaid determinations.
“As a body that evolved from a 2008/2009 merger of five industry-based schemes, FOS understands well the principles of structural simplicity, improved operational capacity and the benefits to consumers of greater awareness and access to effective dispute resolution services,” said FOS Chief Ombudsman Shane Tregillis.
“We are confident that FOS is well-placed to respond to the current challenges and we very much welcome the opportunity to work with the review panel, government, the parliament and all our stakeholders to achieve the common goals of improving consumer redress and industry standards in the financial sector,” he said.
NIBA has made a submission to the review of EDR schemes, and will continue to monitor progress of the review. NIBA CEO Dallas Booth said: “We do not want to see the cost of FOS increasing for insurance brokers because of reforms being implemented for other parts of the financial services system.”