The Ombudsman for Banking Services and Investments (OBSI) has published a revised governance bylaw that reflects the comments it received on reform proposals published in May this year.
OBSI published the revised bylaw for comment on Wednesday, along with its response to feedback it received on the proposed framework.
The revised bylaw incorporates a number of changes from the original proposals, such as explicitly identifying directors as either pubic directors or industry directors; the board will now have three standing committees instead of two (finance and audit; governance, human resources and compensation; and, policy and standards); and, directors will be appointed to a maximum three-year term instead of a two-year term in most instances, with the possibility of four years in exceptional circumstances; among other things.
The governance proposals come in response to recommendations made by OBSI’s independent reviewer last fall. Earlier this year, the ombudservice also named a new chair, and it is recruiting new directors (the deadline for nominations was July 31). It is also in the process of adopting some reforms to its suitability assessment and loss calculation practices.
Many of the other reforms recommended by the independent reviewer are out of OBSI’s control, requiring the involvement of regulators and other policymakers. So far those proposals have not been taken up by the relevant authorities.
Comments on the revised bylaw are due by August 31, and OBSI hopes to finalize it in time for its annual meeting in September.