Merged ombudsman will stick to its knitting
The industry’s new mega-disputes resolution body may wield considerable weight within the industries it serves, but it won’t become an advocate for consumers, according to Superannuation and Corporate Law Minister Nick Sherry.
Speaking after the launch in Melbourne on Thursday of the Financial Ombudsman Service (FOS), Senator Sherry told insuranceNEWS.com.au the new service – which brings together the general insurance, financial services and banking ombudsman organisations – isn’t intended to act as an advocate.
“It can highlight systemic problems to member companies, but it would be careful not to exceed its brief,” he said. “They have to be able to adjudicate disputes, but it’s not intended that the service takes up an advocacy role. There are other organisations to do that.”
Former Banking Ombudsman Colin Neave is the Chief Ombudsman, supported by new Banking Ombudsman Philip Field, Sam Parrino (general insurance), and Alison Maynard (investments, life insurance and superannuation).
Mr Sherry says FOS will provide a single entry point for consumers and allow for easier access to dispute resolution services.
Speaking to what he called a “power gathering” of leading figures from the financial services sector – but no representatives of the general insurance industry – Mr Sherry said the merged service will provide independent dispute resolution services for up to 80% of Australia’s banking, insurance and investment disputes.
“Our financial services regime is based on the principles of transparency, fairness and consistency,” he said. “External dispute resolution schemes like the new Financial Ombudsman Service play an important role in keeping the regime on a level playing field.”
Speaking after the launch in Melbourne on Thursday of the Financial Ombudsman Service (FOS), Senator Sherry told insuranceNEWS.com.au the new service – which brings together the general insurance, financial services and banking ombudsman organisations – isn’t intended to act as an advocate.
“It can highlight systemic problems to member companies, but it would be careful not to exceed its brief,” he said. “They have to be able to adjudicate disputes, but it’s not intended that the service takes up an advocacy role. There are other organisations to do that.”
Former Banking Ombudsman Colin Neave is the Chief Ombudsman, supported by new Banking Ombudsman Philip Field, Sam Parrino (general insurance), and Alison Maynard (investments, life insurance and superannuation).
Mr Sherry says FOS will provide a single entry point for consumers and allow for easier access to dispute resolution services.
Speaking to what he called a “power gathering” of leading figures from the financial services sector – but no representatives of the general insurance industry – Mr Sherry said the merged service will provide independent dispute resolution services for up to 80% of Australia’s banking, insurance and investment disputes.
“Our financial services regime is based on the principles of transparency, fairness and consistency,” he said. “External dispute resolution schemes like the new Financial Ombudsman Service play an important role in keeping the regime on a level playing field.”