A New National Financial Ombudsman's Office

• Published date: 25 March 2024
• Subject Matter: Finance and Banking, Financial Services
• Law Firm: ENS
• Author: Ms Wandile Ndabambi

The National Financial Ombud ("NFO") is a new and potentially effective way of resolving disputes between financial service providers and consumers. Companies must be aware and prepared to deal with consumer complaints using the new NFO Rules to adjudicate such complaints. The NFO combines four separate South African Ombud Schemes under one umbrella Financial Services Ombud scheme. It has jurisdiction over Banks, Credit Providers, Short-Term Insurers (Non-Life Insurance), and Long-Term Insurers (Life Insurance).

The intention is to ensure fair and just outcomes for consumers and financial service providers. Among the notable provisions are:

• Opportunity for making Representation: Parties involved in a complaint have a limited time to present their case before the NFO proceeds with making a determination.
• Obligation to Report Contraventions: The NFO is mandated to report significant breaches of rules or failures to cooperate by a Financial Service Provider (Participants) to relevant authorities.
• Complainant's Rights: Empowering complainants, the rules allow them the option to pursue litigation or alternative forums if they disagree with NFO rulings or recommendations.
• Confidentiality: Upholding the confidentiality of complaint proceedings, information obtained during the process is privileged and may only be disclosed with the consent of all...