Financial Ombudsman Scheme
Launch date: 14/03/2012
Review status: Comments published
What is the review about?
Introducing an Ombudsman Scheme for financial complaints in Jersey was a recommendation of the 1999 ‘Edwards Review’ of financial regulation in the Crown Dependencies, and the subject of much consideration and sporadic progress ever since. By 2009 there was little sign of the Ombudsman, but that year a successful amendment to the 2010 Business Plan by Senator Alan Breckon secured the inclusion of the all important law drafting time.
Since then work has been ongoing and significant progress achieved. Industry consultation, including a formal process and the establishment of an Industry/Department Working Group, has been carried out. The Panel understands that the Minister for Economic Development plans to lodge the legislation before the summer recess in 2012, with the Ombudsman likely to be operational from early 2014. The intention appears to be to develop and implement the Ombudsman Scheme for Jersey first, with the potential for Guernsey to co-ordinate its legislation and join later. The Panel will begin taking evidence when the draft legislation is made public by the Minister (currently envisaged to be later in April/early May), and plans to publish its report containing all of the findings and recommendations in June/July this year.
Terms of reference
1.To examine key elements of the draft Financial Ombudsman Scheme legislation to assess whether it is appropriate to Jersey and fit for purpose, including:
i. the scope of the scheme (i.e. the financial services it would cover)
ii. the complaint process/awards/appeals/powers
iii. its independence from industry and government
iv. its territorial scope
v. the funding mechanism
2.To assess whether the proposed Financial Ombudsman Scheme is compatible with the criteria established by British and Irish Ombudsman Association.
3.To examine the development of proposals for the Financial Ombudsman Scheme to expand into a joint scheme involving Guernsey.