Merger of financial industry external dispute resolution schemes announced

The Insurance Ombudsman Service Limited Board and the Financial Industry Complaints Service Limited Board and the Banking and Financial Services Ombudsman Limited have announced that agreement in principle to the merger of those three schemes had been reached.

It is intended the new scheme will provide dispute resolution services for over 90% of all the disputes which arise in relation to the provision of financial services in Australia. The Service would provide a “one stop shop” for the vast majority of consumer and small business disputes between the community and financial services providers.

It is hoped that, subject to the regulatory and other requirements, the new scheme will be operating from 1 July 2008.