The financial industry ombudsman has revised its terms of reference, allowing it to tackle systemic issues.

The Ombudsman for Banking Services and Investments announced that, following an extensive consultation that began last year, its board of directors has approved a revised terms of reference. The target implementation date for the new terms is April 1, 2009.

OBSI says that two of the more notable revisions is the provision concerning systemic issues, and new complaint-handling procedures. “On systemic issues, the terms now have a provision under which OBSI will be following up on potential systemic issues that arise out of individual complaint files by contacting the firm and asking it to undertake an investigation. Should a systemic issue be found, OBSI will offer to work with the firm to arrange compensation for affected clients and to fix the problem,” it says.

If there is disagreement between OBSI and the firm on the nature of problem, or the remedy, the file will be referred to the appropriate regulator for review, it adds.

In addition, the organization is introducing new complaint-handling procedures that will give consumers the option of bringing their complaint to OBSI 90 days after they start the firm’s internal complaints process. “This is consistent with the new investment sector complaint-handling rules from IIROC and MFDA that are meant to streamline the process and ensure consumers are aware of their options,” it explains.

Other changes include provision for firm and client agreements to suspend limitations periods while OBSI is considering a complaint; improved communication to consumers about the dispute resolution process; and clarification of OBSI’s monetary limit of $350,000, it reports.

More detail will be provided prior to the planned effective date on how OBSI will implement the new aspects of the terms of reference.

IE