International Network of Financial Services Ombudsman Schemes

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International Network of Financial Services
Ombudsman Schemes
2009 Conference
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I have been tasked with attempting to answer the
following questions

• What does the Media want?

2. Do we need to publish?
3. The advantages of publishing
4. The disadvantages of publishing
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WHAT DOES THE MEDIA WANT?

Does anybody really know? We do know that they
want
1. SCANDAL AND SENSATIONALISM

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Does the media also want?
2. GOOD NEWS/ DO GOOD
They do expose various public interest stories /
issues
Subprime crisis, Melamine poisoning of milk in
China, Wars, Human Rights violations, earthquake
in Italy, Swine Flu epidemic in Mexico etc.
But what the media really wants is bad news

The real news is bad news
Marshall Mcluhan (1911-1980) Canadian
communications theorist and educator
I think that this quotation fairly sums up the
reality. Bad news sells!!
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Whilst on the topic of quotations, I have
included a random sample of some very cynical
ones.
Early in life I had noticed that no event is ever
correctly reported in a newspaper George Orwell
(1903-1950) British novelist, essayist, and critic
The most important service rendered by the press
and the magazines is that of educating people to
approach printed matter with distrust Samuel
Butler (1612-1680) British poet and satirist

A petty reason perhaps why novelists more and
more try to keep a distance from journalists is
that novelists are trying to write the truth and
journalists are trying to write fiction Graham
Greene (1904-1991) English writer
The man who reads nothing at all is better
educated than the man who reads nothing, but
newspapers Third president of the United States
Thomas Jefferson (1743 1826)
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DO WE NEED TO PUBLISH? (South African Experience)
FAIS

• Statutory
• South Africa Ombud
• Voluntary

Pension Fund Adjudicator
Banking Ombudsman
Long Term Insurance Ombudsman
Short Term Insurance Ombudsman
Credit Ombudsman

• Statutory Ombuds oblidged to publish (Not
  precedent setting,
• but does not afford measure of guidance.)

• Determinations - effect of civil judgement /
  executable

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RECENT CHANGE

• During March 2009, Ombudsman for Long Term
  Insurance scrapped
• confidentiality clause in its rules

• Now compulsory to disclose all details of a
  determination against an
• insurer , including its identity

• This change does not apply to settlements, only
  to determinations or
• rulings

• Identity of complainant will remain confidential

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Do not publish

• Voluntary ombuds

Not a Regulator
Facilitates settlement / mediation
Makes recommendations based on Banking Code,
Law, International practice and equity
If bank rejects a recommendation made by banking
ombud, latter may publish recommendation and the
fact that the bank has refused to abide by it.
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ADVANTAGES OF PUBLISHING

• Creates public awareness of existence of office

• Confirmation that office is functioning properly

• Institutions keen to avoid adverse publicity
  reputational damage

• Deters errant persons

• Restores confidence in the public mind

• Educates consumers

• Keeps industry abreast of developments

• Large Financial Service Providers ensure that
  proper risk control in place

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DISADVANTAGES OF PUBLISHING

• Tends to create a confrontational atmosphere

Resolution often delayed
Claimant prejudiced
Rulings challenged in Court

• If an innocent person is found guilty on the
  evidence then unwarranted
• adverse publicity could be attracted could
  set record straight

• A provider could settle a case just to ensure
  that it does not result in a
• determination

• The industry could use the same public forum to
  try and influence the
• decisions/workings of office

• Should they not get the desired result could
  use media to lash out

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CONCLUSION

• To publish or not to publish that is the
  question?
• (with suitable apologies to William
  Shakespears Hamlet)

• Double - edged sword?

• Discussion

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Postal Address P.O. Box 5728 Johannesburg
2000 South Africa Tel [phone] Fax
27 (0)11 838 0043 Email clivep_at_obssa.co.za
THANK YOU !
Presented by Adv Clive Pillay Ombudsman for
Banking Services, South Africa