MR No. 2015 – 11
16 April 2015
The Financial Markets Authority (FMA) has recently signed Memorandums of Understanding (MOUs) with the Insurance Savings Ombudsman (ISO) and the Banking Ombudsman Scheme (BOS). This follows the completion of MOUs with the Financial Dispute Resolution Scheme (FDRS) and Financial Services Complaints Limited (FSCL) last year. The FMA and the dispute resolution schemes (DRS) already enjoy a cooperative relationship and these MOUs formalise and enhance that collaboration.
The MOUs establish a framework for consultation and cooperation that will enable thematic reviews of complaints to assist both the FMA and the dispute resolution schemes to achieve their objectives. There is a robust framework in place to ensure that data integrity and privacy is maintained throughout this relationship, with privacy being fundamental to these arrangements.
The dispute resolution schemes provide a cost effective way for consumers and financial service providers to resolve complaints over retail financial product issues and sales processes.
The work of the DRS in the course of carrying out their service provides valuable information that can inform the FMA’s regulatory priorities and approach.
Liam Mason, FMA’s General Counsel, said “we’re pleased to get these MOUs in place as this shows our commitment to work together with agencies that can help the FMA discover early warnings of potential harm. Greater coordination between our agencies helps us to better serve the public and raise confidence in financial services, by improving our understanding of thematic or systemic issues.”
“The insights we gain from the DRS help us to regulate in a more preventative and collaborative way and this is a positive step for investors, consumers and the financial markets.”