Professional Networking Event
The Financial Ombudsman Service:
resolving disputes
Tuesday 5 February
Rupert Simpson
Outreach Officer, The Financial Ombudsman Service
www.ifslearning.ac.uk/events
resolving disputes
Rupert Simpson
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basics and background
set up by statute as an alternative
to the courts …
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the regulatory landscape
Financial Services and Markets Act
2000
the regulators and
authorisers
resolving disputes
compensation
(last resort)
Consumer Credit Act 2006
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changes to the landscape
 looking at our relationships with:
 The Financial Conduct Authority (FCA)
 The Prudential Regulation Authority (PRA)
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businesses we cover
it’s not just banks …
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we also cover …
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our approach to dispute resolution
 an inquisitorial remit
 contrast with a civil court
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outcomes – fair and reasonable
coming to a ‘fair and reasonable’
conclusion, taking into account:
 law and regulations
 regulators’ rules, guidance and standards
 codes of practice
 good industry practice –
as seen by the ombudsman
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how we work
3 stages
1
initial enquiries
2
casework
3
ombudsman – final decision
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payment protection insurance
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payment protection insurance
 around 30 million policies sold
 3 million have complained
 we are contacted around 10,000 times per week
 estimated cost to the industry: £15 billion
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the saga continues
 steady volumes projected until 2016
 80% complaints referred to us concern PPI
 reputational damage and the blame game
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banks and their computer troubles
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the original problem
 caused by a faulty software update at RBS group
 major disruption to transactional retail banking
 consumers unable to see correct balances or
make payments
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the ombudsman’s approach
 a specialist team for a unique caseload
 encouraging different banks to work together
 our position where losses were hard to prove
 considering reputational damage
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wider lessons and themes
 the role of The Payments Council
 highlighted the reliance on smooth banking
services
 recurring IT problems
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resolving disputes
questions?
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To view any forthcoming events please visit
our website www.ifslearning.ac.uk/events
www.ifslearning.ac.uk/events