The implementation of the new National Financial Ombud Scheme South Africa (NFO) has been postponed from January to 1 March.
The NFO will result in the amalgamation of the Credit Ombud, the Ombudsman for Banking Services (OBS), the Ombudsman for Long-term Insurance (OLTI), and the Ombudsman for Short-term Insurance (OSTI). The four ombud schemes will become divisions within the NFO.
Leanne Jackson, the Chief Ombud and the chief executive of the Ombud Council, told Moonstone that the postponement was the result of the need to sort out the new scheme’s governance and administration processes.
The Ombud Council has supervisory jurisdiction over the statutory ombud schemes – the FAIS Ombud and the Pension Funds Adjudicator – and the recognised (in terms of section 194 of the Financial Section Regulation Act) industry schemes: the Credit Ombud, OBS, OLTI, OSTI, and JSE Ombud.
Moonstone previously reported on the publication of the NFO’s draft Rules and draft Memorandum of Incorporation.
Jackson also told Moonstone that she intends to submit the new Rules for the FAIS Ombud to Parliament once both Houses open on 8 February.
The Ombud Council published the draft Rules in September last year, and the deadline to comment was 16 October.
Read: Ombud Council publishes new FAIS Ombud Rules for comment
In terms of section 102(1) of the FSR Act, the Rules must be submitted to Parliament for at least 30 days while Parliament is in session.
Jackson said that once the comments had been collated and analysed, there had not been enough time to meet this requirement before Parliament adjourned last year.
Most of the comments received had been about the proposed complaints-handling provisions, and Jackson said she did not expect the final Rules to differ significantly from the draft Rules.
