Ombudsmen for financial service providers

Financial service providers must generally affiliate with an ombudsman under the Financial Services Act. Ombudsmen offer an independent mediation channel for disputes between providers and clients.

The ombudsman system is intended to give clients a low-threshold route for resolving disagreements without immediately turning to court proceedings. It complements, but does not replace, the legal duties of financial service providers and the supervisory responsibilities of the authorities.

Recognition of ombudsmen

An ombudsman must be recognised by the competent federal authority before it can perform this role. Recognition depends on independence, adequate organisation, transparent procedures, suitable funding, qualified personnel and the ability to handle cases fairly and efficiently.

Affiliation by providers

Financial service providers subject to the affiliation duty must join a recognised ombudsman. They should inform clients about the relevant ombudsman and cooperate with mediation procedures in accordance with the applicable rules.

Mediation function

Ombudsmen examine complaints, facilitate communication and support settlement discussions. They do not act as courts and do not normally issue binding judgments, but their work can help resolve disputes early and clarify the positions of both sides.

Supervisory relevance

Information from ombudsman activity can reveal recurring conduct issues in the market. While individual civil disputes are separate from supervision, patterns may be relevant to the broader assessment of provider behaviour.