IOS merges to form Financial Ombudsman Service
A merger between the Insurance Ombudsman Service (IOS), Financial Industry Complaints Service (FICS) and Banking and Financial Services Ombudsman (BFSO) is on schedule for mid-year.
Insurance Ombudsman Sam Parrino told insuranceNEWS.com.au the three schemes will merge to form the Financial Ombudsman Service (FOS), with the first stage to be completed on July 1.
He says the merger is an “inevitable evolution” and will help deal with the proliferation of external dispute resolution schemes across the financial services sector, bringing the three biggest providers under the one roof.
“It will simplify the structure of financial services in Australia, providing a more streamlined process, making it more effective, efficient and with a better capacity,” he said.
“This will lead to greater awareness and greater access, as well as medium-term cost benefits. It also takes note of international trends, moving towards a consolidation of services in this area.”
Under the new structure a chief ombudsman will be appointed, with an ombudsman for each of the divisions – general insurance, banking and finance, and life insurance, investment and superannuation.
Mr Parrino says the first stage of the merger will be the creation of the FOS and transfer of staff and companies resolving dispute matters into the one centre.
“There will still be a similar level of service employing the same terms of reference,” he said. “We will look at standardising those terms in the future. Our first target is to get under the one roof and create the infrastructure and then flesh out the framework.”
He says the merger is good news for the insurance industry as well as consumers of financial services and products. He believes the FOS will be a significant player in the financial services sector in the future.
Mr Parrino will join FICS CEO Alison Maynard and BFSO’s Colin Neave on a roadshow to speak with association members in Melbourne, Brisbane, Adelaide, Gold Coast and Perth, with the first to be held in Sydney on Friday.
Insurance Brokers Disputes Ltd Company Secretary Philip Field told insuranceNEWS.com.au there are no plans to join the FOS at this stage.
But he says the consumer service will keep its options “open and under review”. He says it is still early days and board members may decide they want to take part further down the track.
Insurance Ombudsman Sam Parrino told insuranceNEWS.com.au the three schemes will merge to form the Financial Ombudsman Service (FOS), with the first stage to be completed on July 1.
He says the merger is an “inevitable evolution” and will help deal with the proliferation of external dispute resolution schemes across the financial services sector, bringing the three biggest providers under the one roof.
“It will simplify the structure of financial services in Australia, providing a more streamlined process, making it more effective, efficient and with a better capacity,” he said.
“This will lead to greater awareness and greater access, as well as medium-term cost benefits. It also takes note of international trends, moving towards a consolidation of services in this area.”
Under the new structure a chief ombudsman will be appointed, with an ombudsman for each of the divisions – general insurance, banking and finance, and life insurance, investment and superannuation.
Mr Parrino says the first stage of the merger will be the creation of the FOS and transfer of staff and companies resolving dispute matters into the one centre.
“There will still be a similar level of service employing the same terms of reference,” he said. “We will look at standardising those terms in the future. Our first target is to get under the one roof and create the infrastructure and then flesh out the framework.”
He says the merger is good news for the insurance industry as well as consumers of financial services and products. He believes the FOS will be a significant player in the financial services sector in the future.
Mr Parrino will join FICS CEO Alison Maynard and BFSO’s Colin Neave on a roadshow to speak with association members in Melbourne, Brisbane, Adelaide, Gold Coast and Perth, with the first to be held in Sydney on Friday.
Insurance Brokers Disputes Ltd Company Secretary Philip Field told insuranceNEWS.com.au there are no plans to join the FOS at this stage.
But he says the consumer service will keep its options “open and under review”. He says it is still early days and board members may decide they want to take part further down the track.