CIBN takes critical look at Financial Ombudsman Bill

The Chartered Institute of Bankers  of Nigeria, (CIBN) recently held a round table breakfast discussions on the importance of having a Financial Ombudsman; where it also considered some of the provisions of the draft bill.  This draft bill, which seeks to promote and institutionalise the Financial Ombudsman in Nigeria, has been in existence since 2011.

The Financial Ombudsman Service fairly and independently resolves disputes between consumers — including some small businesses — financial services providers. Effectively, disputes between consumers and financial institutions or with another financial institution. The independent dispute resolution processes cover financial services disputes including banking, credit, loans, general insurance, life insurance, financial planning, investments, stock broking, managed funds and pooled superannuation trusts.

The service, which is an alternative to going to court, is almost free to consumers, as the Financial Ombudsman Service (FOS) is substantially funded by its members. In other words, there is no need to obtain legal or other advice when lodging a complaint unless you wish to. If you choose to use an adviser you will be expected to pay for the advice you seek, yourself. Where a consumer is unhappy with a financial, insurance or investment product or service, they are expected to complain to the financial services provider asking it to resolve their dispute in accordance with its own Internal Dispute Resolution process. If they are still dissatisfied the matter is escalated to the office of the Ombudsman. All financial services providers who are members of the Financial Ombudsman Service have Internal Dispute Resolution processes.

The Financial Ombudsman Service is viewed as some sought of local arbitration amongst financial service providers and the consumers; and provides financial stability and confidence amongst its users.