Tricky Terms of Reference Issues Master class Michael D’Argaville – Legal Counsel, Investments, Life Insurance & Superannuation, FOS

1. Can FOS progress the disputes in scenarios A, B, C and D through its process? 2. In scenario A, can conversations between the consumer and the FSP amount to a “complaint”? What if the conversations were between the consumer and an agent of the FSP? 3. In scenario B, assuming the dispute relates to life insurance, can FOS progress the dispute if the consumer complained to the FSP over 45 days before lodgement? What if the earliest complaint was one month before lodgement? 4. In scenario B, can FOS progress the dispute if it relates to a credit contract and the consumer requested a variation of the credit contract as a result of financial hardship? Time allowed for internal dispute resolution

Scenario A Can FOS consider the dispute if it is lodged: in January 2010 In September 2010? Scenario B Assuming that the credit card is regulated as a credit contract under the National Credit Code: Can FOS consider the dispute if the credit card was provided on 1 October 2007? Would the position be different if the credit card was provided on 1 April 2002? Time limits for lodgement of disputes

1. Are the final decision letters referred to in scenarios A, B, C and D satisfactory? What may happen if a consumer receives an unsatisfactory final decision letter? 2. Why are final decision letters relevant to time limits for lodging disputes with FOS? Informing complainants about rights to external dispute resolution

Can FOS consider the disputes lodged by Customers A, B and C? Disputes dealt with earlier by FOS or another forum

Would FOS deal with the disputes in Scenarios A and B given they may have been settled? Reopening “settlements” of disputes

Scenario A – 2 Statements of Advice, 8 investments, total loss $1,150,000 – how many claims? Can FOS deal with the dispute? What limits on compensation? Scenario B - $650,000 progressively withdrawn without authority – claim is for $500,000 - Can FOS deal with the dispute? What limits on compensation? Claim, loss and monetary limits