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

10. Requirements for recognition of scheme

 

 

(1) In order to qualify for recognition in terms of section 11, a scheme must comply with the following requirements:
(a) A majority of financial institutions, based on asset value, gross income or client base (as the Council may determine in general or in a particular instance), in a particular category of financial institutions must participate in the scheme;
(b) a body that is not controlled by participants in the scheme and to which the ombud is accountable must—
(i) appoint the ombud, settle the remuneration and monitor the performance and independence of the ombud; and
(ii) monitor the continued compliance by the scheme with its constitution, the provisions of the scheme and this Act and report any non-compliance to the Council;
(c) the scheme must provide for minimum requirements relating to qualifications, competence, knowledge and experience with which the ombud must comply;
(d) the scheme must have sufficient human, financial and operational resources, funded by the participants in the scheme, to enable the ombud to function efficiently and timeously;
(e) the proposed procedures of the scheme must enable the ombud—
(i) to resolve a complaint through mediation, conciliation, recommendation or determination;
(ii) to act independently in resolving a complaint or in making a determination;
(iii) to follow informal, fair and cost-effective procedures;
(iv) where appropriate, to apply principles of equity in resolving a complaint;
(v) to report to the registrar and to a body representative of the relevant category of financial institutions on matters which may be of interest to them;
(f) provision must be made for the effective enforcement of determinations of the ombud;
(g) provision must be made to ensure that the questions, concerns and complaints of consumers are treated equitably and consistently in a timely, efficient and courteous manner;
(h) the scheme must provide for ways in which it will co-operate with the Council’s functions of promoting the education of clients and co-ordinating the activities contemplated in section 8(1)(c); and
(i) any other requirements that may be prescribed and that are not in conflict with the objects of this Act.

 

(2) Nothing contained in subsection (1) precludes a scheme from providing that its participants are bound by other provisions set out in the scheme and that are not in conflict with the provisions of this Act.