FOS braced for surge in CBA/Macquarie dispute claims
The Financial Ombudsman Service (FOS) is implementing its ‘significant event response plan' as it prepares for significant numbers of related disputes from scandals linked to the planning arms of Commonwealth Bank of Australia (CBA) and Macquarie Group.
Under the plan consumers, whose disputes with CBA and Macquarie Group have not been resolved through the institution's special reviews, will be able to turn to FOS for a resolution.
The FOS designated both remediation plans a "significant events", which will enable customers impacted by poor financial advice received from planners of Macquarie Private Wealth (since 2004) and the CBA's Commonwealth Financial Planning and Financial Wisdom between 1 September 2003 and 1 July 2012, to have their dispute dealt with under the ombudsman's significant event response strategy.
The ombudsman said the plan is activated "for events that can potentially result in significant numbers of related disputes coming to the FOS".
"It provides for early communication with relevant stakeholders and a streamlined, expedited process for the resolution of related disputes," the FOS said.
"In accordance with FOS's significant event strategy, FOS has been in contact with the two banks to obtain cooperation in providing early information on the likely flow of disputes to FOS and the documentation FOS will need to ensure any disputes received can more quickly and directly to a FOS decision.
"Each dispute will be reviewed and decided by FOS based on what is fair in all the circumstances in accordance with the FOS terms of reference and consistent with FOS's approach to similar disputes we have resolved."
AUTHOR
Nicholas O'Donoghue
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
