An effective system of ombud schemes, which allows for the effective resolution of consumer complaints, is an essential part of the reform of financial sector regulation that the Treasury is working towards. For this purpose, the Treasury has produced a policy document, A Known and Trusted Ombud System for All, for public comment by November 30. Ombud schemes offer a cost-effective and practical way to resolve customer complaints without the parties to the dispute having to go to court or incur legal expenses. The document examines possible options for the reform of the system: enhancing the hybrid model of statutory and industry ombuds; moving towards a centralised model by establishing a single statutory ombud scheme; and establishing exclusive industry ombuds. The reform of the ombud system ties in with the introduction of the Twin Peaks model of regulation, which will create two regulators for the financial services sector — one for market conduct and the other for prudential re...
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