1. A New Climate - Financial Services Ombudsman, Ireland
BIOA
Loughborough University
13 May 2011
Mr William Prasifka

2. Background to FSO Established in 2005.
Successor to voluntary ombudsman schemes for credit institutions and the insurance sector in early 1990s.
Statutory Basis – Findings legally binding.

3. Power of the FSO Investigate /Adjudicate complaints
Award compensation up to €250k
Direct Rectification (effect compensation + €250K)
Findings - legally binding, appealable only to the High Court
Accessible & Free Service to the Consumer

4. Standard of Adjudication
“The FSO ... is required to act in an informal manner and according to equity, good conscience and the substantial merits of the complaint without regard to technicality or legal form.” Therefore, FSO guided, not bound by regulatory codes & law

5. The New Climate

6. Growth Rates
The New Climate

7. Overall Complaints to FSO
3,795
4,374
5,974
7,619
7,230
8,000
The New Climate

8. Drivers of Complaints Investments Payment Protection Insurance
Mortgage Protection Insurance
Mortgages
Other
The New Climate

9. Findings 2010

10. Compensation Awarded 2010
18%
58%
24%

11. Courts hold FSO to High Procedural Standard
Substantial experience before the Courts
Full exchange of submissions & opportunity of parties to respond
Procedures / investigation must reflect the remedy directed
Request for discovery and jurisdiction must be fully considered

12. The Response

13. Complaints Process High Level map of the FSOB complaints process.
Provider
Final Response
Letter
Comment
Complainant
Comment
Complete Complaint Form
Write to provider
Initials
Assess Remit
Offer Mediation
Send Complaint Form
Prompt
Investigators
Prepare and send Summary
Exchange of documents
Complete Findings
Signatory
Allocate
Sign and send 13 13

14. Cases on Hand Cases ‘stall’ at certain points in the process .
There are three major ‘stalling’ points in the process;
Awaiting the final response from the provider (Stage 2)
Awaiting allocation /summary (stage 5)
Awaiting Decision (Stage 7) 14 14

15. Manage Cases Identify bottlenecks Target resources
Streamline process for specific types of complaints
Invest in Decision Making

16. Stakeholder Engagement
Facilitate settlements
Transparent predictable decision making
Active engagement
Industry fora
Mine complaints for trends
Industry must internalise our methodologies

17. Goal
To adjudicate on unresolved disputes between complainants and financial services providers in an independent and impartial manner thereby enhancing the financial services environment for all sectors.

18. Thank You