Central Bank hoping to have ombudsman position filled in early 2021

The Central Bank of The Bahamas is currently in the process of approving a financial services ombudsman, who would oversee the swift resolution of consumer complaints.

The CBOB initially announced plans to appoint an Office of the Financial Ombudsman (OFO) in 2017 to ensure that consumers of financial products and services have adequate avenues to resolve disputes through an open and transparent process.

CBOB Governor John Rolle revealed during Bahamas Business Outlook earlier this month that the bank hoped to have the position filled in early 2021.

Assistant Legal Council at the Central Bank Vandera Carey said this new role will be primarily focused on interfacing with consumer needs.

“The bank is tasked with maintaining economic protections for its consumers and this is applied through our legislative framework. So, in keeping with consumer protection, the bank is currently in the process of approving an ideal candidate for consideration of the role of financial services ombudsman,” she said during a recent webinar on alternative dispute resolution.

“Having this independent person in place, we believe that will strengthen the confidence of consumers and it will invoke more accountability from the financial institutions. Also, the ombudsman will review as well as recommend new and comprehensive regulations where needed to ensure that consumer needs are being addressed.

“So, in keeping with this role, this independent person will serve in a public facing role within the bank and this person will be responsible for investigating and resolving complaints about licensee issues, which are based on the financial institutions that we supervise. So, the ombudsman, once selected, will assist in establishing an office of the financial services ombudsman and his or her supporting staff will be responsible for ensuring that complaints are disposed of in a fair and capable manner.”

Developing domestic policy proposals on consumer financial protection, inclusion and literacy was one of the strategic goals for the Central Bank last year, with expressed focus on advancing efforts for the establishment of an OFO.

Toward this end, Carey said the financial services ombudsman will also be the point of contact for improving public understanding of issues related to complaints that come into the bank and are consumer related.

“Also, the financial services ombudsman will be the liaison officer between the public and financial sector regulators, domestic as well as international financial services institutions and organizations, governmental ministries, professional bodies and associations,” she said.

“The establishment of the role in the bank, we expect, will certainly result in swifter resolution of complaints as this role will be primarily focused on interfacing with consumer needs.”

During his Business Outlook speech, Rolle said, “Initially, the role will strengthen advocacy around service delivery within Central Bank-supervised institutions and identify where principles-based regulations can be deployed under the existing laws within the bank’s remit.

“In addition, the ombudsman will focus on proposals for consumer financial protection that might require new comprehensive regulations. For example, the current scope which the Central Bank has in the payments space would not impact credit products.”

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source https://thenassauguardian.com/central-bank-hoping-to-have-ombudsman-position-filled-in-early-2021/