The Financial Ombudsman Service (FOS) board says it has implemented all recommendations from an independent review conducted in 2013.

The Australian Securities and Investments Commission (ASIC) requires FOS to commission regular, independent reviews of its operations and procedures.

FOS Chairman Michael Lavarch says the board considers these “an important public accountability mechanism for external dispute resolution schemes”.

He says the changes have improved outcomes for consumers.

The review, completed over six months, assessed FOS’ operations against ASIC benchmarks of accessibility, independence, fairness, accountability, efficiency and effectiveness.

It found FOS had made significant improvements in performance, including in management, organisational capability and infrastructure.

Key recommendations focused on the need to eliminate dispute backlogs and speed up the dispute process.

“FOS eliminated a significant backlog in case management by the end of [last year] and across all dispute areas by June… This required a concerted effort by all staff working closely with FOS members, consumer organisations and other stakeholders,” Mr Lavarch said.

The streamlined dispute resolution process was introduced on July 1.

“While it is still early days, FOS is already seeing the benefits of more active engagement with applicants and financial services providers much earlier in the dispute process,” Mr Lavarch said.

FOS has also released its 2015/16 business plan, which includes a review of its performance over the past year.

Chief Ombudsman Shane Tregillis says FOS has wiped out its backlog, streamlined its dispute resolution process and improved the user experience for applicants and financial services providers.

He says the service is operating without a backlog for the first time since it was established in 2008.

Objectives for the year ahead include maintaining the drive for an efficient and effective dispute resolution service, enhancing stakeholder engagement and continuing the program of developing organisational capabilities and infrastructure.

“We are enhancing our quality assurance framework, improving early identification and action on systemic issues and further developing the monitoring and compliance services we provide to the code committees,” Mr Tregillis said.

Read the plan here.