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Temporary PDS & FSG relief for members of FICS, IOS and BFSO

Applies to members of the Financial Industry Complaints Service (FICS), the Insurance Ombudsman Service (IOS) and the Banking and Financial Services Ombudsman (BFSO).


What's new?

From July 2008, a new national Financial Ombudsman Service (FOS) will consolidate the BFSO, FICS and IOS to bring under one roof independent dispute resolution services for up to 80% of Australian banking, insurance and investment disputes.

As a result of the merger, members will be required to amend their Product Disclosure Statements (PDSs) and Financial Services Guides (FSGs) in order to make reference to FOS from July 2008.

In order to facilitate the transfer to FOS however, ASIC has granted temporary relief for members transferring to FOS from updating previously published PDSs and FSGs that don’t mention FOS.

ASIC's Decision

Relief will only apply if:

  • the PDS or FSG was printed prior to 1 July 2008
  • the member has become a member of FOS
  • the member has not included information about FOS in the relevent PDS or FSG

This no-action position is provided on the following conditions:

  • the PDS or FSG was up to date at the time it was printed
  • the Member must provide details of FOS to a consumer who requests the information or makes a complaint. The information may be provided in writing, orally or via a website, and
  • for complaints that are unresolved after having been through a Member's IDR procedures, the Member must inform the complainant that they have a right to pursue their complaint with FOS and provide details of how to access FOS
  • the FOS maintains re-direction arrangements for communications to existing schemes

This no-action relief will apply only until the next reprint of the PDS or FSG, or until 30 September 2009, whichever comes first.

Further information

Should you require any help in relation to your compliance obligations in this regard then please contact your Certainty consultant at (02) 9238 8091 or enquiries@certaintycompliance.com.au

IOS Merger Update: www.insuranceombudsman.com.au