Jersey to get finance ombudsman

Wednesday 22 January 2014

An ombudsman to resolve complaints against the finance services industry, at no cost to the complainant, has moved closer.

More than four years after the States agreed to a Financial Services Ombudsman Law, Economic Development Minister Alan Maclean lodged the legislation this week. It will establish a scheme, to be jointly operated with Guernsey, designed to determine complaints against providers of financial services quickly and with minimal formality.

At present, those seeking redress have to pursue complaints through the courts, which can be a costly process.

Run by the Office of the Financial Services Ombudsman (OFSO), the scheme will be funded by a levy on the financial services industry and by charging the businesses subject to complaints. The role of the ombudsman is to decide how best to proceed and to appoint appropriately qualified complaint handlers on a case-by-case basis.

The ombudsman, to be a part-time senior position, will also be empowered to award compensation up to £150,000 and to assist the successful complainant in claiming  compensation.

Although based in Jersey, staff and board members will come from both bailiwicks.   The set-up costs are estimated at £183,000 with operating costs in the first year of £582,626 on a 50:50 basis between each jurisdiction’s finance service providers. These costs are to be reimbursed from the industry levy.

The OFSO will be a corporate body, with a chairman and three to five board members. It is anticipated that the ombudsman and five staff members will deal with around 700 complaints a year and a high number of enquiries.