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

Chapter 14 : Ombuds

Purchase

(1)	The Ombud Council must determine an application for recognition in terms of section 194 by—

(a)	granting the application and notifying the applicant accordingly; or

(b)	refusing the application and notifying the applicant accordingly.

(2)	The Ombud Council may grant an application for recognition subject to conditions specified by the Ombud Council.

(3)	The Ombud Council must not recognise an industry ombud scheme unless satisfied that—

(a)	a significant number of relevant financial institutions shall be members of the industry ombud scheme, should it be recognised;

(b)	the governing rules of the industry ombud scheme—

(i)	identify the financial products or financial services to which the industry ombud scheme relates, or in the case of a market infrastructure, the services that it provides;

(ii)	require the members of the industry ombud scheme to inform financial customers about the scheme and how to contact and complain to the scheme, at the frequency agreed by the scheme for its members;

(iii)

make adequate and appropriate provision for making complaints;

(iv)	are legally binding on the members of the industry ombud scheme, and enforceable by the governing body of the industry ombud scheme;

(v)	require each member of the industry ombud scheme to comply with, and give effect to, any determination of the ombud made in terms of the industry ombud scheme;

(vi)	make adequate provision for monitoring and oversight of the operation of the industry ombud scheme, including in respect of the terms and conditions of the engagement of the ombud, including remuneration and other benefits, and any action to terminate that engagement;

(vii)

require the ombud to apply, where appropriate, principles of equity when dealing with a complaint; and

(viii)

otherwise comply with applicable Ombud Council rules;

(c)	the ombud scheme has or has available to it sufficient resources and capacity to ensure that it is able to comply with the requirements of financial sector laws in relation to ombud schemes and any conditions that may be specified in terms of subsection (2); and

(d)	recognising the industry ombud scheme will not be contrary to the interests of financial customers, the financial sector or the public interest.

(4)

(a)	The Ombud Council must determine an application as contemplated in subsection (1) within three months after it is made.

(b)	In working out when the period mentioned in paragraph (a) expires, any period between the Ombud Council giving the applicant a notice in terms of section 195 and the requirements in the notice being satisfied is not to be counted.

[Section 196 to take effect on 1 April 2020, per Notice No. 1130 of 2019, GG 42677, dated 30 August 2019]