Say No To Ageism Week 2012
Tom Comerford
Financial Services Ombudsman’s Bureau
16 th May 2012

Introduction & Background

FSO Role
Independent adjudication on unresolved disputes between Complainants and
Financial Service Providers thereby enhancing the financial services environment for all sectors.

Power of the FSO
• Investigate /Adjudicate complaints
• Award compensation up to €250k
• Direct Rectification
• Findings - legally binding, appealable only to the High Court
• Accessible & Free Service to the Consumer

Courts hold FSO to High
Procedural Standard
• Substantial experience before the Courts
• Full exchange of submissions & opportunity of parties to respond
• Procedures / investigation must reflect the remedy directed
• Request for discovery and jurisdiction must be fully considered

Standard of Adjudication
“The FSO ... is required to act in an informal manner and according to equity, good conscience and the substantial merits of the complaint without regard to technicality or legal form.”
Therefore, FSO guided, not bound by regulatory codes & law

‘Lyons & Murray’ Case
• High Court Judgment – 14 December 2011
• “…a material disputed question of fact could only be
resolved by an Oral Hearing…’ – Paragraph 29
• “Once [FSO] proceeds to adjudication, a legal Rubicon is … crossed. As agent of the State, [FSO] is thereby bound to uphold the constitutional right to fair procedures…This has further consequences, for…the resolution of the question of whether there should be an oral hearing is not a matter which goes directly to the specialist expertise of the [FSO] so that the deference to that expertise as enunciated by
Finnegan P. [Ulster Bank Case] is simply not applicable in
this case” – Paragraph 38
• Supreme Court Appeal
• Consequences?

Overall Complaints
3,795 4,374 5,974 7,619 7,230 7,287
The New Climate

Complaints, last 24 Months

Complaints received (%) by Age Group
2012
1 st Jan 2012 to 31 st May 2012 there were 2,980 Complaints received by this office.

Complaint Received (%) by Age Group
2010- May 2012

Products most Complained about for plus 60 age group only (2012)

Findings Outcomes

Not all FSPs are Alike
Best Performers
• FSO upholds < 10%
• Awards – Small
• Cases Upheld – Difficult / Novel
Worst Performers
• FSO upholds > 30%
• Awards – Large
• Cases Upheld – Recurring Issues

Complaints by Sector

Complaints 2011
• Insurance Sector 50% of all complaints
• In Banking – mortgage complaints make up 40% and banking accounts
28% of total banking complaints
• Investment complaints up 6% on last 2 quarters

Insurance Complaints

Outcome of Insurance Findings

Investment Complaints
*Did not separately record investment cases in 2008; they were placed in insurance or banking categories. FSO began recording Investments as its own Sector in 2009

Outcome of Investment Findings

Mortgage and Payment
Protection Insurance

Current Trends – 2011
• Payment and Mortgage Protection Insurance –
18% of insurance complaints, 8% of all
Complaints
• PPI - 405 cases received in 2011
• 50% of PPI - related to mis-selling
• Mortgage Protection
- 199 cases received
- 53 mis-selling

PPI and Mortgage Protection Trends

Outcome of Investigations

Role of FSO in PPI investigation
• Investigate complaints as received
• FSO stats are early warning
• Cannot forecast future complaint trends

Recent Legislative
Developments:
Identifying FSPs?

Long-Stated Aim: Amendment to
Legislation
Problem: FSP Management of Claims /
Recurring issues
Solution: Publication of Claims Record of FSPs
Consultation Process re Legislation
Recent cross-party agreement to change FSO Legislation

Examples of Other Jurisdictions
- League tables
- Context of Market Share
- No. of complaints per 100,000 products
- Balanced Publication
- Public Interest Justification

Conclusion

Recent Trends
• 2011 – New Complaints levelling off
• Still at record levels
• Small decrease in complaints upheld
• Some Institutions are engaging with
FSO and Consumers in resolving complaints sooner
• Needs to continue and happen across industry

The Way Forward
• FSPs must actively manage complaints
• Earlier intervention, before complaint elevation
• Industry must internalise our methodologies
• FSO meets FSPs individually
• Amend Legislation! - Publish FSPs
Complaints Records

Stakeholder Engagement
• FSPs must actively manage complaints
• Earlier intervention, before complaint elevation
• Industry must internalise our methodologies
• Refer to FSO’s published Data /
Guidelines
• More settlements
• Review processes to reduce complaint numbers