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Financial Services Ombud Schemes Act, 2004 (Act No. 37 of 2004)

14. Authority of statutory ombud to entertain certain complaints

 

 

(1) Subject to sections 13 and 19, the statutory ombud may deal with complaints against a financial institution in the circumstances and on the basis set out in subsections (2), (3) and (4).

 

(2) The statutory ombud must deal with a complaint against a financial institution if—
(a) the financial institution does not participate in a recognised scheme;
(b) the recognition of a scheme in which the financial institution participates is suspended or withdrawn in terms of section 12(1); or
(c) the financial institution participates in a recognised scheme, but the ombud concerned lacks jurisdiction in terms of the relevant scheme while the statutory ombud has jurisdiction to entertain such complaint.

 

(3) The statutory ombud must deal with complaints contemplated in subsection (2) in the manner and in accordance with the procedures, applied with the necessary consequential changes, provided for in Part I of Chapter VI of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002).

 

(4) The statutory ombud who deals with a complaint in terms of this section may determine an amount payable by the financial institution in question in order to cover the costs of dealing with the complaint in accordance with guidelines set by the board, after consultation with the Council, and published by notice in the Gazette.

 

(5) The determination of an amount in terms of subsection (4) has the effect of a civil judgment given by a court in favour of the board for a liquid debt and any amount recovered becomes part of the funds of the board.