OBSI responds to FCAC review of external complaints bodies’ operations

Toronto, February 19, 2020 – Today, the Financial Consumer Agency of Canada (FCAC) released its review of bank complaint handling procedures and of the operations of external complaints bodies (ECBs), which included the Ombudsman for Banking Services and Investments (OBSI).

“We commend the Minister of Finance and the FCAC for recognizing the importance of consumer complaint handling in the financial services sector and delivering this insightful and comprehensive report. OBSI takes seriously the opportunities for improvement identified in the report and is committed to working with the FCAC to further enhance our services and better meet our public service mandate,” said Sarah Bradley, Ombudsman and CEO, OBSI. “We appreciate that FCAC recognized OBSI’s strengths in meeting international best practices for financial ombudsmen, including our commitment to promoting accessibility and conducting active investigations.”

“We share FCAC’s concerns about whether the current system of competition between ECBs in Canada benefits consumers. We particularly note their observation that OBSI is the ECB that compares most favourably to international best practices, yet that only two of the large six banks (Bank of Montreal and CIBC) currently offer OBSI’s services to their customers,” said Sarah Bradley. “We continue to believe there should be a single ombudsman for retail bank consumers, as there is for retail investors in Canada.”

“We look forward to contributing to the policy discussion as the government works towards addressing the weaknesses of the current ECB system identified in the report,” Ms. Bradley said.

“We will be reviewing the report’s recommendations closely and developing an action plan based on consultations with our Board of Directors, our Consumer and Investor Advisory Council (CIAC) and other consumer and industry stakeholders,” said Ms. Bradley.

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Canada’s Ombudsman for Banking Services and Investments (OBSI) is a national, independent and not-for-profit organization that helps resolve and reduce disputes between consumers and financial services firms in both official languages. OBSI is responsive to consumer inquiries, conducts fair and accessible investigations of unresolved disputes, and shares its knowledge and expertise with the stakeholders and the public. If a consumer has a complaint against an OBSI participating bank or investment firm that they are not able to resolve with the bank or firm, OBSI will investigate at no cost to the consumer. Where a complaint has merit, OBSI may recommend compensation up to a maximum of $350,000.

For more information, contact:
Mark Wright, Director, Communications and Stakeholder Relations
416-287-2877 ext.2225
mwright@obsi.ca