About the new CHANNEL ISLANDS FINANCIAL OMBUDSMAN

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Fay Ward
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1 About the new CHANNEL ISLANDS FINANCIAL OMBUDSMAN Presentation Hosted by Jersey Consumer Council Jersey- 21 January 2016 Douglas Melville Principal Ombudsman and Chief Executive

2 The Financial Ombudsman CIFO the scheme Overview 2 Structure Funding Scope Complaints handling What s happening now

3 The Financial Ombudsman the concept What is an om-buds-man? 3 An informal alternative to the courts Resolves individual customer complaints about financial services If complaint is upheld, binding award payable by FS provider to complainant Not a regulator or compensation fund

4 The Financial Ombudsman the history Jersey legislation States approval 2011 Consultation 2012 Industry working groups 2014 Law passed 2014/5 Secondary legislation

5 The Financial Ombudsman the structure Structure 5 Matching legislation in both islands Inter-island MOU on joint arrangements Shared board, staff to cover both islands One office in Jersey Opened for business on 16 November 2015

6 The Financial Ombudsman the structure Governance 6 Guernsey Department and Jersey Minister select the Board The Board selects the Ombudsman, to be appointed on terms securing independence Funding by industry through levies and case fees, with start-up loans from the States

7 The Financial Ombudsman the funding Funding 7 Schemes published Sept 2015 Initial proposal for first 2-3 years Financial Ombudsman fine-tuned budget Annual levy per sector for most retail firms Case fees 200 ( 600 if no levy paid)

8 The Financial Ombudsman the remit Scope 8 Individuals, microenterprises and certain CI charities can complain Banking, money services, insurance, investments (incl. certain funds), credit and pensions

9 The Financial Ombudsman the limitations Time limits 9 Event must be on or after 1 January 2010; 2 July 2013 (for Guernsey) Referred to CIFO within 6 yrs (2 yrs) Limit reduced to 6 months from final response depending on complaints handling

10 The Financial Ombudsman the approach Complaint-handling by providers Two-tier structure Complaint must go to provider first Guidance on model procedure published by CIFO in November

11 The Financial Ombudsman the approach Enquiry and complaint-handling by CIFO Enquiries Mediation Investigation and decision Feedback 11

12 The Financial Ombudsman the plan What is happening now? Office open and processing initial inventory of complaints Consultations on eligible complainants and close relationships concluded Model complaint handling guide issued Funding levies 12

13 The Financial Ombudsman the value proposition How this new office can help Jersey reputation Industry reputation Political pressure valve A no that sticks Feedback to the business, regulators and government Avoids court and media options 13

14 The Financial Ombudsman The Process From inquiry to determination Inquiry 14 Receipt of Complaint Ini4al review against CIFO's remit Complaint Intake Process Informa4on gathering Formal Determina4on Decision Inves4ga4on Media4on

The Financial Ombudsman The Process How we determine if a complaint is in remit Is the financial service provider operating in or from within Jersey, Guernsey, Alderney or Sark?

15 The Financial Ombudsman The Process How we determine if a complaint is in remit Is the financial service provider operating in or from within Jersey, Guernsey, Alderney or Sark? NO YES Is the business of the financial service provider subject to CIFO s jurisdiction? NO YES Are you complaining about an event which occurred within CIFO s timeframe? NO YES Are you an eligible complainant? YES 15 NO

16 The Financial Ombudsman over to you What we are asking the firms to do Document, document, document Do a great review themselves Engage early when escalated to CIFO Have authority to settle 16

17 The Financial Ombudsman over to you Any questions? 17

18 For further information Channel Islands Financial Ombudsman (CIFO) Telephone:

CIFO COMPLAINT STATISTICS Q1 2016

CIFO COMPLAINT STATISTICS Q1 2016 These statistics cover the work of the Financial Ombudsman (CIFO) for the three months ended 31 March 2016 (Q1 2016). CIFO is the joint operation of two statutory ombudsman