The Ombudsman for Banking Services and Investments (OBSI) has received federal Minister of Finance approval as an external complaint body (ECB) for banking complaints, the dispute resolution service announced on Friday.
OBSI’s approval takes effect in sixty days.
New rules were adopted to regulate the provision of dispute resolution services in the banking industry after a couple of banks withdrew from OBSI and engaged their own ombudservice.
Toronto-based OBSI is the sole provider of dispute resolution serves in the investment business, and that aspect of its mandate was recently expanded to include all firms registered by the securities commissions.
OBSI had hoped for similar treatment at the federal level for banking complaints, but instead, the government chose to create a framework for approving and overseeing providers of dispute resolution services.
OBSI is continuing to search for a replacement for Doug Melville, who officially left his role as ombudsman and CEO on May 31 to become principal ombudsman and chief executive for the Channel Islands Financial Ombudsman (CIFO).
Melville’s replacement is expected to be named in the fall, OBSI says. For now, OBSI Chairman Fernand Bélisle is overseeing OBSI management.
The number of banks using the service has grown by over 22% in the last two years, OBSI notes.
“We are grateful for the trust our participating banks have placed in us,” the organization says, “and we are committed to continuing to provide them and their customers with the high-quality dispute-resolution services that Canadians have come to expect.”