by Susan Edmunds
ISO is in the process of changing its name to the Insurance and Financial Services Ombudsman Scheme, which ombudsman Karen Stevens said better reflected its role after 20 years in the industry.
“It’s important for our financial service provider members who aren’t insurers to feel valued. They are important members of our scheme,” she said.
The change takes effect from November 1.
The ISO is one of three dispute resolution providers operating in the financial services sector, alongside FSCL and Financial Dispute Resolution.
The Banking Ombudsman caters solely for banks.
The not-for-profit FSCL has complained to Commerce Minister Paul Goldsmith about the name change.
It is concerned about the word “ombudsman” giving an inaccurate impression of the scheme’s role in financial services complaints.
An MBIE spokesperson said: “The Minister received correspondence from Financial Services Complaints Limited. He considered that the proposed changes were adequate and complied with the principles listed in section 52(2) and the requirements of section 63 of the Financial Service Providers (Registration and Dispute Resolution) Act.”
But it is believed that FSCL is now considering legal action.
Chairman Kenneth Johnston did not rule it out. “The immediate answer is no. We haven’t initiated any legal action at the moment. It’s an issue about which we have concerns and we are reserving our position.”
He said it was not appropriate for him to discuss the situation but said FSCL had concerns about the use of the term “ombudsman” and was taking advice and considering its next steps.
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