“Turning poachers into gamekeepers” Ombudsman Association’s biennial Conference May 2015

Lincoln Place, Dublin 2 35 staff

Our Mission “Independent adjudication on unresolved disputes between Complainants and Financial Service Providers, in an independent and impartial manner, thereby enhancing the financial services environment for all stakeholders”

Background to FSO Established in 2005 under The Central Bank and Financial Services Authority of Ireland Act 2004

Statutory Objectives Informal complaints /consumer protection Independent Efficient Effective Fair Informal Improve public understanding regarding complaints /consumer protection

Who can complain to us? All personal customers Limited companies with a turnover of €3,000,000 or less Unincorporated bodies, charities, clubs, partnerships, trusts, etc.

Our powers Investigate /adjudicate complaints Award compensation up to €250k Direct rectification Findings - legally binding, appealable only to the High Court Accessible & free service to the consumer

Our stakeholders Complainants Providers & provider organisations Central Bank of Ireland Department of Finance Council Media

Who & what do we deal with? 700 institutions within FSO’s remit 34 product types & 80 types of complaint Accounts Health insurance Travel /Life Insurance Motor & House Insurance Mortgages Investments

2005-2015 the story so far.. Demand led service Unprecedented volume over the last 5 years Legacy issues connected with financial crisis Operational challenges & uncertainty Backlogs Legal environment – unique challenges

At its peak....

Statutory Office – cannot turn off the tap

FINANCIAL CRISIS MORTGAGE ARREARS CLIMBING COMPLAINTS MELTDOWN

We have moved to a new era - Why ? How ?

New /closed complaints

Complaint Trends

Was it carrot or stick ?

Why the reduction?

Why the reduction? Change to our procedures : Active engagement between Provider and Consumer BEFORE coming to us -

Why the reduction? September 2013 – Legislative Change Power to set out complaints records of individual providers

Financial Services Ombudsman given Name and Shame powers Finance houses face a three strikes and you are out policy under new rules allowing a watchdog to name and shame

Provider Engagement 2013/14 – significant provider engagement programme Encouraged adoption of our methodology Reputation was a driver Result – increasing evidence of more engagement by Providers to resolve complaints at early stage

Engagement & Settlement FSO has always encouraged parties to resolve issues before coming to FSO Encourage discussion and meaningful engagement with Consumers Best outcome = resolve issues without need for adjudication by FSO

CHALLENGES

New /closed complaints

Our Mission “Independent adjudication on unresolved disputes between Complainants and Financial Service Providers, in an independent and impartial manner, thereby enhancing the financial services environment for all stakeholders”

THANK YOU