who we are

MANDATE OF THE OMBUD COUNCIL

The Ombud Council is established by the Financial Sector Regulation Act, 2017 (FSR Act) with a mandate to assist in ensuring that financial customers have access to and are able to use, affordable, effective, independent and fair alternative dispute resolution processes for complaints about financial institutions in relation to financial products, financial services and services provided by market infrastructures.

ROLE OF THE OMBUD COUNCIL

The Ombud Council supports and oversees the financial ombud system. The Council's tasks are to:

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Monitor performance of all financial ombud schemes (statutory and industry schemes).

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Recognise industry ombud schemes and approves their governing rules.

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Promote co-operation and co-ordination between ombud schemes and resolves jurisdictional overlaps

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Promote awareness of and publicises ombud schemes and what they do and supports financial inclusion.

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Facilitate access to schemes and supports financial inclusion.

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Protect the independence of ombud schemes.

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Keep the Minister of Finance informed about complaint and conduct trends.

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Anything else reasonably necessary to achieve its objective.

POWERS OF THE OMBUD COUNCIL

The Ombud Council is the regulatory authority over the financial sector ombud system.It has a full suite of regulatory, supervisory and enforcement powers over ombuds and ombud schemes:

  • Making Ombud Council Rules (binding subordinate legislation) which impose obligations on ombuds and ombud schemes
  • On-site inspections, information gathering
  • Designating schemes to deal with certain complaints where there is a jurisdiction gap
  • Being able to impose penalties and take other enforcement action if a scheme commits serious misconduct.

A key focus is resolving overlaps between ombud schemes and ensuring complaints are handled efficiently, while also monitoring the performance of these schemes, safeguarding their independence, and maintaining the highest standards of service delivery.

In July 2024, the Ombud Council introduced new Rules for the Ombud for Financial Services Providers (FAIS Ombud), which are binding regulatory instruments made under the FSR Act. The most significant effect of the Rules is increasing the compensation amount from a previous maximum of R800,000 to a maximum of R3,5 million, as well as streamlining processes.

WHAT THE OMBUD COUNCIL IS NOT

The Ombud Council is not an ombud scheme and does not handle customer complaints against financial institutions.  It does not act as an appeal or escalation body for decisions made by the ombud schemes. This would be inconsistent with our mandate to protect the independence and impartiality of ombuds (section 177(1)(c) of the FSR Act.)

The Ombud Council will however consider complaints that an ombud scheme has not followed relevant financial sector laws or its own governing rules, or has otherwise followed a materially inappropriate process.  It will assist complainants with identifying which ombud is responsible for hearing their complaint in cases where the jurisdiction is unclear.

OTHER OPTIONS THAT MAY BE AVAILABLE TO YOU

Ombud Scheme Appeal Processes

If an ombud scheme has adjudicated your complaint against a financial institution, but you are dissatisfied with the outcome, please ask the ombud scheme for details of their appeal processes, as it may be possible to appeal the scheme’s decision.

The FAIS Ombud’s Statutory Jurisdiction

If you have submitted a complaint about a financial institution to an ombud scheme, but the scheme has advised that they do not have jurisdiction to deal with it, the FAIS Ombud’s office may be able to assist you.

The Ombud Council’s Designation Powers

If you are unable to find any ombud scheme that has jurisdiction to deal with your complaint against a financial institution, please e-mail us at enquiries@ombudcouncil.org.za. We may be able to point you in the right direction or, in some cases, designate an existing scheme to deal with your complaint.

Approach the FSCA

The Financial Sector Conduct Authority is the conduct regulator of financial institutions. If you believe that a financial institution has contravened a financial sector law, or that an entity is providing financial services without the necessary license, contact the FSCA through their website www.fsca.co.za or call them on 0800 20 37 22.  Bear in mind though that the FSCA’s role in such cases will be to consider regulatory enforcement action against the financial institution, which will not necessarily include redress for financial customers. Also note that the FSCA will not be able to assist you if your complaint is about an ombud scheme, as it does not have jurisdiction over ombud schemes.