The Ombudsmen for Financial Services Complaints (FSCL) and the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) are in merger talks.
The purpose of the merger is to simplify and improve dispute resolution services in the financial sector for consumers, says FSCL in a statement.
FSCL states both organisations believe there will be positive gains for consumers and scheme participants from a merger. If the merger plan goes ahead, it will not be implemented until mid-2025.
“The merger is not a cost cutting exercise, rather, it is to future-proof the financial sector and create greater confidence for consumers,” states FSCL.
“The merger process will take some time to complete and will include consultation with scheme participants and other stakeholders.”
Both organisations offer a free and independent dispute resolution service for consumers with complaints about financial services, including insurance and non-bank lending. Combined they handle 90% of financial services complaint cases (excluding banking).
FSCL states Andrew Bayly, Minister of Commerce and Consumer Affairs supports the merger.