The Insurance & Financial Services Ombudsman (“IFSO”) Scheme is consulting on proposed changes to its Terms of Reference (“TOR”) and Constitution. Professor John McMillan AO recommended that a number of changes should be made, to improve the dispute resolution service for Participants and their customers as part of the Independent Review of the IFSO Scheme he carried out in 2018, and some of these recommended changes impact on the TOR and Constitution.
The TOR and Constitution were last revised in 2015. Since then, there have also been law changes which require the TOR and Constitution to be updated.
Due to Covid and the disruption caused industrywide, the IFSO Scheme is now proposing to make those changes to its TOR and Constitution, which will come into effect in early 2023.
The proposed changes primarily reflect law changes; align the TOR with the other Approved Dispute Resolution Schemes’ (“ADRS”) rules; implement the recommendations made by the last independent public review; and/or recognise modernised processes and procedures.
MBIE started its process to align the ADRS rules at the beginning of 2020 and intends to increase the jurisdiction of the ADRS and align timeframes within which a consumer can bring a complaint. Cabinet has now approved the policy changes to set consistent rules, and regulations will be made at some stage next year.
The Regulatory Impact Statement outlines the changes on the Treasury’s website. However, because of the uncertainty around when the regulations are likely to be made, the IFSO Scheme Commission has decided by to proceed with the necessary changes now, as a matter of some urgency.
Sue Suckling, IFSO Scheme Chair
We are inviting feedback on the proposed changes by 5 pm on 9 January 2023. Please send your feedback to email@example.com.
31 January 2023 Deadline for feedback on consultation documents
February 2023 Summary of feedback and revised consultation documents released
February 2023 Consultation meetings to be held in Auckland, Wellington and Christchurch
Early March 2023 Final documents released
31 March 2023 Revised TOR and Constitution come into effect.