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Financial Ombud System Diagnostic Published for Comment

July 30, 2021

National Treasury

National Treasury and the Financial Sector Conduct Authority seek comment on a diagnostic study entitled: “South Africa – Financial Ombud System Diagnostic”.

In a statement, treasury pointed out that the study, prepared by the World Bank Group, aims to “provide an independent review of South Africa’s financial ombud system and recommend reforms to enhance customer protection and good-quality outcomes in the financial services sector”.

Ombud schemes covered in the study include Credit Ombud, Ombudsman for Short Term Insurance, Ombudsman for Banking Services, Ombudsman for Long Term Insurance, Pension Funds Adjudicator, Ombud for Financial Services Providers (FAIS Ombud) and Johannesburg Stock Exchange Ombud.

Recommendations to address the findings include setting up a National Financial Ombud to replace the current seven schemes except for retirement funds; the proposed reformed Pension Funds Adjudicator would become the Retirement Funds Ombud; improving the current Ombud Council Framework and implementing an update of complaint-handling requirements to improve consistency among financial services providers.

Comment is invited until 3 September 2021.

Meanwhile, in Government Gazette 44898, the South African Reserve Bank announced that Home Remitt (Pty) Limited has been appointed as an Authorised Dealer in foreign exchange with limited authority.