FOS wary of banking tribunal
The Financial Ombudsman Service (FOS) has looked to protect its own role as it cautioned the Federal Government against making hasty decisions on a banking tribunal before comprehensively reviewing the external dispute resolution.
As FOS mulled over the possibility of the emergence of another dispute resolution forum, it issued a statement urging for the Government to allow the independent expert panel it appointed to review external dispute resolution and complaints schemes in the financial sector before deciding on the banking tribunal.
It emphasised the need to give this time, stating the terms of reference for the review was released only two weeks ago by Minister for Revenue and Financial Services, Kelly O'Dwyer.
Two Federal Government MPs from New South Wales and Queensland have proposed the banking tribunal and approached senior members of the Liberal party about the proposal as an avenue for consumers who cannot afford to go to courts for banking disputes.
Federal Treasurer, Scott Morrison, indicated he was open to the idea as a way to thwart a Royal Commission into the banking sector, which is being heavily pushed by Federal Opposition Leader, Bill Shorten, and Labor.
However, FOS believes the proposal for a banking tribunal also falls within the scope of the current government review of dispute resolution and complaint schemes.
"The independent experts appointed by the government to conduct this review are best placed to consider all aspects, from all angles, of dispute arrangements for the financial sector," the ombudsman said.
"Importantly, we want to see less rather than more complexity for consumers in resolving financial disputes. We also want to avoid changes that could lead to a more costly, adversarial and legalistic approach to dispute resolution for consumers and small businesses."
AUTHOR
Malavika Santhebennur
Recommended for you
With regional and rural suburbs exhibiting high spare capacity to invest, Money Management speaks to three regional advisers on the opportunities beyond the major cities and the importance of a strong network.
Platform consolidation is expected to accelerate among financial advisers this year, as software company Finura pinpoints which two platforms are set to be the winners, thanks to this trend.
The software provider has made several appointments in its APAC wealth propositions team, with a focus on driving growth across digital advice, Xplan and strategic partnerships.
The platform has announced it plans to close its Xplore managed discretionary account service in 2026 which holds $2 billion in funds under administration.
