(11 July 2008 – Australia) The Federal Government has announced the merger of three dispute resolution schemes in the financial services sector.The Australian Government’s Financial Ombudsman Service is a combination of three separate external dispute resolution schemes.
These are the Banking and Financial Services Ombudsman, the Financial Industry Complaints Service, and the Insurance Ombudsman Service.
Senator Nick Sherry, minister for Superannuation and Corporate Law, said that the merger means that independent dispute resolution services for up to 80 percent of Australian banking, insurance and investment disputes can now be provided under one roof.
Sherry said that one benefit of the merger was that consumers and industry members can be quickly referred to the service best suited to handle their complaint.
The merger comes after a recommendation by the Productivity Commission earlier in the year.
In its Review of Australia’s Consumer Policy Framework, released on 30 April, the Commission recommended that Australian governments improve the effectiveness of external dispute resolution arrangements for consumers by consolidating existing bodies into a single umbrella scheme.