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Explore the roles and processes of Financial Ombudsman Service (FOS) in resolving disputes related to investments, banking, insurance, and superannuation in Australia. Learn about complaint handling, divisions, and jurisdictional limits within FOS. Discover how FOS facilitates resolution through initial assessment, conciliation, and formal determination processes. Enhance your understanding of customer expectations and complaint management strategies.
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Silvia Renda (Investments, Life Insurance and Superannuation) Complaints Manager
Financial Ombudsman Service (FOS) • New company established 1 July 2008, into which the operations of FICS, BFSO and IOS have been consolidated • From 1 July 2008, the new Financial Ombudsman Service has brought under one roof dispute resolution services for up to 80% of Australian investment, banking an insurance disputes
FOS – how it works • FOS has three divisions: • Investments, Life Insurance & Superannuation • Banking & Finance • General Insurance • Colin Neave is the Chief Ombudsman of FOS • Divisions are managed by individual industry Ombudsmen, Sam Parrino, Philip Field and Alison Maynard. • FOS board is made up of financial services industry and consumer representatives with an independent chair • FOS board also seeks advice from consumer and industry specific advisory committees
FOS – organisation chart Support Departments Finance & Accounting, Information Technology & Human Resources
ROLE OF FOS • FOS is independent - does not act or advocate for complainants or Members. • FOS provides a service of independent investigation and resolution of complaints for Members and complainants. • FOS’ role not to sanction or regulate Members – ASIC/APRA • FOS does provide independent assessment and determination of complaints – merit or no merit.
Overview FOS ILIS FOS ILIS deals with complaints in 3 ways: • Initial Assessment • Enquiries Team and Legal Case Manager • Focus is on assessing jurisdiction and provision of all relevant complaint material • Investigation/Conciliation • Case Manager or Conciliator • Focus is on investigating the issues – getting Members’ responses, assessing the merits • Facilitating a negotiated resolution • Formal Determination • Panel Case Manager and Panel or Adjudicator
FOS ILLS Division- Jurisdictional limits $150,000 Funds, Planning, Stockbroking $280,000 Life Insurance $6,000 Per month income stream
FOS ILIS Complaint Process Initial Assessment Conciliation Arbitration
What is a complaint? New Australian Standard for complaint handling: AS ISO 10002 “an expression of dissatisfaction made to an organisation, related to its products, or the complaint-handling process itself, where a response or a resolution is explicitly or implicitly expected.” (service is also implied when referring to an organisations ‘products’)
Customer Dissatisfaction • Dissatisfaction arises as a consequence of a perceived discrepancy between expected and perceived performance. • These expectations are influenced by actual needs and previous expectations of the consumer. • Communication plays an important role
Complainant Expectations • To be listened to and not judged • To have their point of view understood and acknowledged • Treated with respect • To be given an explanation • To be given an apology • To have action taken (and to be kept up to date on actions) • To be treated fairly • Make sure it never happens again
Complainant Expectations • Who complains? • 97% are quite likely or very likely to tell others of a good experience • 95% are quite likely or very likely to tell others of a bad experience • Handled well • 88% will repurchase if a complaint is handled well • How we complain? • 43% prefer to make a complaint by phone • 32% in person • 10% in writing • 14% by email
Complainant Expectations • Good emotions build loyalty (feeling appreciated, valued, reassured, secure) • Negative emotions destroy a relationship (feeling neglected, insulted, disgusted, cheated)
Avoiding, managing and resolving complaints • Build relationships • Trust • Let them vent • Interests over rights • Fairness
Avoiding, managing and resolving complaints • Listening • Identify what is important • Separate the people from the problem • It might be you one day – how do you want to be treated?
RAPPORT “What happens long term without rapport and relationship building? Not much!”
RAPPORT Why do we instantly like some people and others not? ‘We tend to like people like ourselves!’
Rapport – Why? • To create the right conditions for an effective exchange of thoughts and ideas • Or to make it easier to get along with others and they with you
Matching • Voice • Physiology • Beliefs • Empathy • Breathing • Common Ground
Getting to Yes • Invest options for mutual Gain “The Orange Story”
Getting to Yes • Invent options for mutual gain Asking “Why” – dig deeper to create more options that may resolve the dispute
Avoiding a FICS complaint • Provide clear expectations (could there be any misunderstandings?) • Ensure the client understands the products/service being provided • Follow through with expectations • Make file notes (dated, easy to understand) • Have client sign all relevant documentation
Responding to a complaint • If an allegation is made against a representative, a statement, in the first person, should be included • It is essential a response is outlined in a professional, relevant and non-emotive manner • Address all the issues raised • Focus on the facts in dispute rather than the people – don’t make personal attacks • Highlight any possible resolution options.
Responding to a complaint • What is the best outcome for you/your company • What is the best outcome for the complainant • Is there a resolution which both parties may be satisfied with? • What bearing would the resolution (or lack of resolution) have upon you/the company/the complainant/ stakeholders/ shareholders etc? • What is the ‘cost’ of the resolution (or lack of resolution)?
Things FICS will consider: • What was discussed at the initial meeting? • What information/documents were provided? • What do the file notes taken by the advisor show? • Was an interpreter needed/used? • Why the advice was implemented on the same day? (Order of the application form and SOA)
Things FICS will consider: • Information provided in the client fact find, SOA and PDS’. • Details of Maria’s investment objectives, risk profile and investment timeframe, and why the investments recommended were suitable for her. • An advisor statement
How could the advisor help prevent this complaint from escalating? • Listening to the needs and objectives of the client • Ensuring all details surrounding any discussion is documented (good, clear file notes) • Ensuring the client understands the recommendations – provide an interpreter if required
How could the advisor help prevent this complaint from escalating? • Provide ample time for client to read and understand the recommendations prior to signing documentation • If client contacts you with concerns, listen to the concerns, find out why they are concerned – discuss what the client wants to do and options available