1. Say No To Ageism Week 2012 Tom Comerford Financial Services Ombudsman’s Bureau 16 th May 2012

2. Introduction & Background

3. FSO Role Independent adjudication on unresolved disputes between Complainants and Financial Service Providers thereby enhancing the financial services environment for all sectors.

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

5. 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

6. 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

7. ‘Lyons & Murray’ Case High Court Judgment – 14 December 2011 “…a material disputed question of fact could only be resolved by an Oral Hearing…’ – Paragraph 29 “Once [FSO] proceeds to adjudication, a legal Rubicon is … crossed. As agent of the State, [FSO] is thereby bound to uphold the constitutional right to fair procedures…This has further consequences, for…the resolution of the question of whether there should be an oral hearing is not a matter which goes directly to the specialist expertise of the [FSO] so that the deference to that expertise as enunciated by Finnegan P. [Ulster Bank Case] is simply not applicable in this case” – Paragraph 38 Supreme Court Appeal Consequences?

8. Overall Complaints 3,795 4,374 5,974 7,619 7,230 7,287 The New Climate

9. Complaints, last 24 Months

10. Complaints received (%) by Age Group 2012 1 st Jan 2012 to 31 st May 2012 there were 2,980 Complaints received by this office.

11. Complaint Received (%) by Age Group 2010- May 2012

12. Products most Complained about for plus 60 age group only (2012)

13. Findings Outcomes

14. Not all FSPs are Alike Best Performers FSO upholds < 10% Awards – Small Cases Upheld – Difficult / Novel Worst Performers FSO upholds > 30% Awards – Large Cases Upheld – Recurring Issues

15. Complaints by Sector

16. Complaints 2011 Insurance Sector - 50% of all complaints In Banking – mortgage complaints make up 40% and banking accounts 28% of total banking complaints Investment complaints up 6% on last 2 quarters

17. Insurance Complaints

18. Outcome of Insurance Findings

19. Investment Complaints *Did not separately record investment cases in 2008; they were placed in insurance or banking categories. FSO began recording Investments as its own Sector in 2009

20. Outcome of Investment Findings

21. Mortgage and Payment Protection Insurance

22. Current Trends – 2011 Payment and Mortgage Protection Insurance – 18% of insurance complaints, 8% of all Complaints PPI - 405 cases received in 2011 50% of PPI - related to mis-selling Mortgage Protection - 199 cases received - 53 mis-selling

23. PPI and Mortgage Protection Trends

24. Outcome of Investigations

25. Role of FSO in PPI investigation Investigate complaints as received FSO stats are early warning Cannot forecast future complaint trends

26. Recent Legislative Developments: Identifying FSPs?

27. Long-Stated Aim: Amendment to Legislation Problem: FSP Management of Claims / Recurring issues Solution: Publication of Claims Record of FSPs Consultation Process re Legislation Recent cross-party agreement to change FSO Legislation

28. Examples of Other Jurisdictions -League tables -Context of Market Share -No. of complaints per 100,000 products -Balanced Publication -Public Interest Justification

29. Conclusion

30. Recent Trends 2011 – New Complaints levelling off Still at record levels Small decrease in complaints upheld Some Institutions are engaging with FSO and Consumers in resolving complaints sooner Needs to continue and happen across industry

31. The Way Forward FSPs must actively manage complaints Earlier intervention, before complaint elevation Industry must internalise our methodologies FSO meets FSPs individually Amend Legislation! - Publish FSPs Complaints Records

32. Stakeholder Engagement FSPs must actively manage complaints Earlier intervention, before complaint elevation Industry must internalise our methodologies Refer to FSO’s published Data / Guidelines More settlements Review processes to reduce complaint numbers

33. Thank You