Dispute resolution merger idea slammed

All financial service providers are required to be members of an approved dispute resolution scheme, of which there currently four: the Banking Ombudsman, the Insurance and Savings Ombudsman (ISO), Financial Dispute Resolution (FDR) and Financial Services Complaints Limited (FSCL).

But this could be too many, according to the MED, which raised the issue in its briefing to the incoming Minister of Consumer Affairs.

"There are four dispute resolution schemes for the financial sector. The Banking Ombudsman Scheme and Insurance and Savings Ombudsman Scheme have both existed for about two decades," the briefing said.

"Whether four financial sector dispute resolution schemes is the most efficient way to deliver financial sector dispute resolution services needs to be considered especially taking into account Australia has just one scheme."