UK ombudsman David Thomas says that providing a system of redress if something goes wrong builds consumer confidence and also provides businesses with a system of mediation and a means finally to resolve customer complaints.
Currently any consumer with a complaint against a Jersey finance firm can approach the Jersey Financial Services Commission, although the powers of the regulator are very limited.
States Deputy Alan Breckon has been lobbying for an ombudsman service for some time and a draft proposition is likely to be presented early next year.
Mr Thomas, who was guest speaker at a seminar for finance professionals on Wednesday, is corporate director and principal ombudsman for the UK’s Financial Ombudsman Service.
He is responsible for corporate policy, including relations with the government, regulators, and the European Commission and previously headed the service’s work on banking, mortgages, pensions and split capital investment trusts.
Outlining procedures for handling complaints in the UK, he explained that the service covers some 22,000 firms including banks, building societies, insurance firms, investment companies, and intermediaries.
In all there are nearly 1,000 staff, including 30 ombudsmen, who deal with around 614,000 inquiries and 111,000 cases a year.
