The external dispute resolution (EDR) scheme called for submissions into an independent review late last year and released the findings in March 2014.
The independent review found that FOS had only “partially met” its efficiency benchmark, with ‘timeliness’ being the key sticking point.
The FOS board responded to the review by committing to fast-track decisions for simpler and low-value disputes; to reduce the two-step dispute lodgement process to one step; to reduce the number of ‘touch points’ in the process by adding specialist expertise; to consult with stakeholders on hardship disputes; and to introduce plain English drafting to FOS documents.
To implement these changes, FOS proposed to change its terms of reference via a consultation paper released on 7 July 2014.
FOS received submissions from “a range of stakeholders” about two additional terms of reference changes, and the board announced it would proceed with them both in yesterday’s announcement.
The first change will allow FOS to join other parties to a dispute, even if they are not members of FOS; and the second will allow FOS to review disputes involving an investment purchased directly or indirectly through a platform offered in Australia.
Update: A spokesperson for FOS has sought to correct the final sentence of this article.
"The new FOS terms of reference joinder provision will not enable FOS to join a financial services provider to a dispute if they are not a current FOS member. It will only apply to current FOS members," said the spokesperson.
