New law on financial ombudsmen
11 November 2004
The National Assembly has adopted the Financial Services Ombud Schemes Bill aimed at protecting clients in the financial services sector.
Speaking during a National Assembly debate on the Bill on Tuesday, Finance Minister Trevor Manuel said the Bill would regulate minimum standards for voluntary ombud scheme arrangements in the financial services sector.
He said these included the ombudsman for banking services, long-term and short-term insurance.
An ombudsman is an official appointed to investigate or attend to individual complaints against bad or dishonest administration, especially that of public authorities.
"The Bill will also ensure that each and every consumer is protected by establishing a statutory ombudsman to resolve complaints in those cases where a voluntary ombud scheme arrangement does not exist", Manuel said.
An independent council to be set up in terms of the Bill will assess the compliance criteria for
recognition of an ombud scheme.
Manuel said granting recognition to ombud schemes will ensure a peace of mind for consumers. "Consumers are assured that the ombud dealing with their complaint is independent, appropriately qualified and empowered to do so", he said.
The minister also said there was a need to address issues of micro lenders in order to protect the poorest South Africans. "This is an issue we need to take up", he said.
Manuel added that existing ombud schemes and the council to be established under the Bill should educate consumers about the appropriate forum to resolve their specific disputes.
The Bill will be forwarded to the National Council of Provinces for concurrence.
Source: BuaNews
| 
