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Raj Venga, CEO of the Credit and Investments Ombudsman ("CIO") has expressed concern about a proposal by the Federal Government to establish a tribunal to hear complaints about financial service providers.
In a Statement Mr Venga said, "Australia is currently very well served by the existing dispute resolution architecture in financial services. The types of disputes referred to in the current debate about the need for a new body generally involve amounts that exceed the monetary limits of CIO and the Financial Ombudsman Service (FOS), and so have not been able to be considered by either scheme".
Mr Venga pointed out that any such tribunal would:
• Create a tax-payer funded right of appeal to the courts, defeating the objective to resolve disputes fairly, cheaply and expeditiously,
• Not have the multiplicity of access points for industry and consumer representation that the current structure affords,
• Not have specialised industry knowledge required for the sensible resolution of disputes,
• Be substantially more inflexible, and
• Not be capable of responding quickly to changes in relevant markets.
Time will only tell at this stage if this is the beginning of the end for External Dispute Resolution ("EDR") however we will continue to monitor the progress of any such move to abolish the EDR process.
Source: CIO Media Release August 2016