Tuesday, December 13, 2016 - Posted by Michael McCulloch
A recent report, released exclusively to ABC News, has now recommended that the Government establish a new ombudsman to replace both the Financial Ombudsman Service
("FOS") and the CIO.
Prime Minister, Malcolm Turnbull, said on 7 October, "We will get a low cost, speedy tribunal to deal with these types of consumer complaints, customer complaints against banks". The Government, at this stage, is indicating that a single tribunal will be established as a "catchall for having a one-stop consumer complaints stop [sic]".
The comments by Mr Turnbull came amid appearances by CEO's of the big 4 banks before a parliamentary committee. It was a recommendation by the committee that, if required, a Banking and Financial Services Sector Tribunal be setup prior to 1 July 2017. Any such tribunal would replace both FOS and the CIO with the tribunal being funded by the banks and being backed by legislation.
We will continue to monitor and report on these changes as they are released.