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
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
Australian licensees are expected to make greater use of custom model portfolios for their clients, according to State Street Investment Management, following in the footsteps of US peers.
Adviser Ratings has argued that it’s time for more advisers to utilise digital engagement tools available to them as a disconnect grows between consumers seeking advice from finfluencers and from professionals.
