Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)

Chapter 14 : Ombuds

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(1)

The Ombud Council may make rules for, or in respect of, ombuds and ombud schemes, aimed at ensuring that financial customers have access to, and are able to use affordable and effective, independent and fair alternative dispute resolution processes for complaints about financial institutions in relation to financial products, financial services, and services provided by market infrastructures.

(2)	Ombud Council rules in terms of subsection (1) may be made on any of the following matters:

(a)	Governing rules of ombud schemes;

(b)	governance of ombud schemes, including in relation to—

(i)	the composition, membership and operation of governing bodies and of substructures of ombud schemes; and

(ii)	the roles and responsibilities of governing bodies and their substructures;

(c)	the qualifications and experience of ombuds, including fit and proper person requirements for ombuds and for members of governing bodies of industry ombud schemes;

(d)	the definition and type of complaints to be dealt with by specified ombud schemes;

(e)	dispute resolution processes;

(f)	any matters on which a regulatory instrument may be issued by the Ombud Council in terms of a specific financial sector law in so far as it relates to ombud schemes and ombuds;

(g)	matters that may in terms of any other provision of this Act be regulated by rules of the Ombud Council; and

(h)	any other matter that is appropriate and necessary for achieving the aim set out in subsection (1).

(3)	An Ombud Council rule must not be inconsistent with relevant financial sector laws.

(4)	An Ombud Council rule must not interfere with the independence of an ombud or the investigation or determination of a specific complaint.

(5)	The Ombud Council must, in developing Ombud Council rules—

(a)	seek to provide for a consistent approach and consistent requirements for all ombud schemes, promote the efficiency and cost-effectiveness of ombud schemes, and promote co-ordination and co-operation between ombud schemes; and

(b)	take into account differences in the nature and complexity of complaints heard by different ombud schemes.

(6)	Different Ombud Council rules may be made for, or in respect of—

(a)	different categories of ombuds and ombud schemes; and

(b)	different circumstances.

(7)

(a)	The Ombud Council may, on application from an ombud scheme, exempt that ombud scheme from an Ombud Council rule for a specified period of time, provided that the Ombud Council is satisfied that the intended outcome of the rule will still be met.

(b)	Any such exemption may be subject to conditions set by the Ombud Council.

(8)	An Ombud Council rule may amend or revoke another Ombud Council rule.

[Section 201 to take effect on 1 April 2020, per Notice No. 1130 of 2019, GG 42677, dated 30 August 2019]