Long queue forms for complaints schemes
Cole told Good Returns that while in the long-term it might be "ideal" that only one industry-led external disputes resolution body existed, any organisation that complied with regulatory guidelines would be allowed to provide such a service.
"It could be that a number of [complaints] schemes apply and maybe they will analyse the sector later and merge," she said. "Some have told us they'd prefer only one scheme [when the regulatory regime begins]."
In two consultation papers released this week the MCA laid out its guidelines for the formation of external dispute resolution bodies and proposals for the creation of a reserve disputes resolution scheme.
Under the Financial Services Providers Act all those "providing financial services to the public", including financial advisers, will be required to belong to a disputes resolutions scheme. While the Act envisaged that industry-led bodies would form complaints schemes it also called for the creation of a reserve scheme that would act as a catch-all for cases not covered by others.
A tender process is scheduled to begin in September and the scheme itself to launch in May 2010.
In the consultation paper the MCA says the reserve scheme will have a "compensation cap" of $100,000 per claim (or $1,000 per week for disability insurance) rather than the higher claims limits currently used by the Banking Ombudsman and the Insurance & Savings Ombudsman.
"... as we are encouraging industry-led dispute resolution solutions, a cap deliberately set below the limit of the existing Banking Ombudsman and Insurance & Savings Ombudsman schemes of $200,000 has been chosen to enable the industry-led schemes to have a point of difference when promoting these schemes," the paper says.
Cole said the minimum claims limit for any external financial services complaints scheme would be no lower than that set by the Disputes Tribunal, currently proposed to increase to $15,000 (or $20,000 if both parties to the dispute agree).
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