Message from the Ombudsman
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The year in review has been an active one for the Scheme in many ways.
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Overview of disputes
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In the year to June 2007, the office received 6,446 new cases, a small increase of 1.9 per cent compared to the previous year. The number of cases closed also increased this year, albeit slightly, to 6,349 compared with 6,336 in 2006. In addition, the number of cases subjected to in-depth investigation increased this year from 249 to 261, continuing a trend of an increase in the number of cases raising complex legal and practical issues.
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Early resolution of disputes
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I have in the past reflected on the excellent early resolution rate which our members have been achieving over the last few years. In the current reporting period, this rate remained steady at around the previous year’s level of 93 per cent. This is, once again, an excellent result as far as the Scheme is concerned.
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Systemic issues
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Our concentration in 2007 on identifying and then dealing with systemic issues has been both satisfying for us and regarded positively by our members. This year we identified 41 potential systemic issues, 26 of which were confirmed as systemic and resolved.
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New members
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We were very pleased to welcome 19 new financial services providers to the Scheme over the reporting period. The expanding coverage of the Scheme continues to encourage the personal and professional development of our staff, as exposure to a wide range of financial products and problems, whilst providing challenges, leads to greater job fulfilment. In addition, our increasing membership gives to us real opportunities for influencing, in a positive sense, the performance of greater numbers of providers within the financial services market.
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Merger of schemes
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In August 2006, we hosted, in partnership with the IOS and FICS, the first large scale International Financial Services Ombudsman Conference in Australia. In past years we have hosted similar conferences in Australia but on this occasion we welcomed over 150 delegates from Australia and Canada, the Czech Republic, Denmark, Finland, India, Ireland, Malaysia, New Zealand, Pakistan, South Africa, Trinidad and Tobago, South Africa, Switzerland, the United Kingdom and the United States of America. The exchange of information during conference sessions, together with the informal discussions which inevitably take place during such a conference, led to very positive responses from all those who attended.
During the conference, the Parliamentary Secretary to the Treasurer, the Hon Chris Pearce, raised the issue of the convergence of dispute resolution mechanisms in this country in the financial services area. Mr Pearce then asked the Chair of IOS and FICS, Peter E Daly AM, and me to advise him on the possibility of such a convergence.
Mr Daly and I reported favourably on the prospect of the schemes developing closer relationships and by the end of the year in review, the options for taking the matter further were being considered by the Board and the Boards of IOS and FICS.
The benefits of closer cooperation between the three larger schemes are demonstrable, including:
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- less confusion for consumers in identifying the appropriate dispute resolution scheme;
- greater efficiency in combining information technology infrastructure and support and administrative and accounting functions;
- pooling of resources to promote and publicise
- the services provided by the schemes; and
- a focus on providing comprehensive complaints data, which will enable financial services providers to develop financial services products that meet the interests of both consumers and industry participants.
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Importantly, the schemes have agreed that the existing expertise which each has developed should not be diluted by the development of a closer working relationship.
The challenge of potential scheme mergers, whether they involve legal or regulatory issues, are considerable and over the next year much work will be required to develop what could be a new scheme servicing Australian consumers and industry participants.
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Thank you
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Given my involvement in this work on issues around scheme merger and amalgamation, I have been supported magnificently by the staff of our office and have continued to enjoy great support from the Board, all of which has been appreciated. To the staff and the Board, I give my thanks for that support.
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