FOS consults on new Terms of Reference Back |
 The Financial Ombudsman Service (which was created by the merger of FICS with the banking and the insurance Ombudsmen in July) is consulting on its new Terms of Reference.
The Terms of Reference cover the following areas:
o Jurisdiction to hear and determine complaints
o Appointment and powers of decision makers
o The decision making process, and
o Referral of matters to ASIC
In October we made a lengthy submission to FOS on the draft Term of Reference. Some of the main points were:
o The consultation should wait until ASIC concludes its own review of requirements for Complaints Schemes
o The proposed monetary limit of $280,000 is too high and not justified for stockbrokers, whose average claim is around $35,000, and
o The Ombudsman’s model with internal review mechanisms has advantages over the Panel model.
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