The contents of this presentation were accurate on the date of presenting - 6th February 2020 - and should be used only as a reference by those who attended the full presentation.

Presentation to LIA

By Diarmuid ByrneDirector of Dispute Resolution

Office of Financial Services and Pensions Ombudsman

6 February 2020

• An Ombudsman resolves complaints made by someone ‘small’ against something ‘big’

Role of an Ombudsman

3

January 1, 2018 Act commences, FSPO opens

Mission Vision & Values

Who can complain to the FSPO

• Consumers

➢In addition to individual consumers the term ‘consumer’, for the

purpose of bringing a complaint to the FSPO, includes limited

companies and unincorporated bodies such as partnerships, charities,

clubs, trusts and sole traders with an annual turnover of no more than

€3m annually

• Pension scheme members and beneficiaries including current, former or potential members of group pension schemes or holders of PRSAs, beneficiaries and potential beneficiaries and representatives of deceased members

What Consumers can Complain About The CONDUCT of regulated financial service providers involving;

➢The provision of a financial service

➢An offer to provide a financial service

➢Refusal to provide a financial service

The conduct of a pension provider involving;

➢The alleged financial loss occasioned to a complainant by an act of maladministration done by or on behalf of the pension provider

➢Any dispute of fact or law that arises in relation to conduct by or on behalf of the pension provider

Registration & Referral

Dispute Resolution Service

Investigation & Adjudication Service

How We Now Manage Complaints

Registration & Referral

➢Register Complaints

➢Ensure complaint is complete and has a final response

➢Refer complaints back to provider where necessary

➢1,639 Complaints closed at this stage in 2018

Dispute Resolution Service – Default Option

➢Voluntary

➢Confidential

➢Can save time and money

➢Can provide flexible and innovative solutions

➢Can help to re-balance power between bigger and smaller parties

➢Can maintain relationships

➢2,331 closed through DRS in 2018

Investigation & Adjudication ➢We don’t just rely on the evidence the parties volunteer, we actively

investigate

➢Adjudicate based on what is fair and reasonable in the circumstances

➢ Not just about the terms and conditions

➢Take account of good practice as well as consumer and general law

➢Regulatory framework – codes of practice – consumer protection codes

➢Information provided – information not provided

➢473 complaints closed at this stage in 2018

Wide Range of Adjudicative Powers

Financial Services Complaints – can direct compensation of up to €500,000

Can direct rectification - can involve putting a person back to a position where they previously were before the complaint arose

➢Publish Decisions

➢Report on named financial service providers

➢Change a practice

➢Report to Central Bank

Pension Complaints can only restore any loss – cannot direct compensation

➢Publish case studies

Database of Decisions

➢Our database of legally binding decisions is available online at

www.fspo.ie/decisions.

➢Will include over 600 decisions by the end of February 2020

➢Can be searched by:

➢Sector

➢Product/service

➢Conduct complained of

➢Year

➢Outcome

➢Publish case studies of pension decisions in the Digest

Upcoming Publications

➢Mid February 2020

➢Publication of 2019 Decisions

➢Ombudsman’s Digest of Decisions Volume 2

➢End February 2020

➢Tracker Mortgage Decisions

➢Ombudsman’s Digest of Decisions Volume 3

➢March 2020

➢Overview of Complaints 2019

Mediation Case Studies

➢Insurance claim rejected – Non Disclosure

➢Insurance Income Protection

➢Banking Tracker Mortgage

➢Banking failure to provide release of property within reasonable time

➢Pension purchase of service

Decision Case Studies - Insurance

➢Car insurance policy cancelled because of incorrect date recorded for driver’s

licence

➢Car insurance policy cancelled due to non-disclosure of an accident

➢Rejection of an insurance claim and voiding of a house insurance policy for

non-disclosure

➢Dispute regarding value of stolen property

➢Rejection of a travel insurance claim

Decision Case Studies - Banking

➢Complex issues relating to separation of joint mortgage holders

➢Appointment of a receiver

➢Objection to the terms and conditions of a loan agreement

➢Access to shares in a credit union for a member who is a guarantor

➢Reporting of a customer’s credit rating to Irish Credit Bureau

Relationship with the Central Bank of Ireland

Legislation provides for exchange of information with the Central Bank with which

we have excellent interaction that assists to:

➢Avoid consumer detriment

➢Identify and deal with systemic issues/trends

➢Deal with serious issues – even if one off

WHY THE FSPO ?

Free to Complainants

Confidential & Private

No legal costs

Mediation is the preferred option

No undue regard to technicality or legal form

Can be expensive

Court has open hearings

Legal costs

Less Mediation

Can be overly technical

Ceisteanna?

Thank you for your attention.

For further information, please visit

www.fspo.ie