The Financial Consumer Agency of Canada and the Joint Regulators Committee have issued responses to the report released by an independent evaluator conducting a review of the Ombudsman for Banking Services and Investments.
The report indicated that the OBSI complied with regulatory requirements. The ombudsman had also shown improvements since its last independent review in 2021.
Nonetheless, the current report lists recommendations to progressively enhance the OBSI’s operations, the implementation of which FCAC said it would track. The agency oversees both the OBSI and the independent review.
“Canadians’ right to make a complaint through a financial institution’s complaint-handling process is fundamental to maintaining trust in the financial system. Consumer protection is enhanced when Canadians have access to a fair, timely and accessible complaint-handling process that includes the right to use the external complaints body to address unresolved complaints with their banks,” FCAC said in a statement.
The JRC and the Canadian Securities Administrators both confirmed receipt of a copy of the report. The CSA said it welcomed the results of the review as it progressed work on a proposed framework for an independent dispute resolution service with binding authority.
In a statement, the JRC expressed its expectation that registrants would participate in OBSI services “in a manner consistent with their obligation to deal fairly, honestly and in good faith with their clients.” The committee said it would continue to engage with OBSI staff and its board this year regarding the report, its results and recommendations, and the body’s perspective. The JRC also indicated that it would carefully consider the report’s findings as it weighs possible next steps.
The OBSI was introduced in 2024 as the sole external complaints body for all federally regulated banks. While all banks must be part of the OBSI, the body is separate from banks and conducts free and neutral evaluations of consumer complaints. The OBSI handles complaints through procedures set in the Bank Act, the Financial Consumer Agency of Canada Act, and the Financial Consumer Protection Framework Regulations.
The body may be asked to review a complaint if a consumer finds its resolution through the bank’s internal process unsatisfactory or if the bank has not closed or resolved the matter within 56 days of its receipt as required by law. The OBSI is also required to undergo an evaluation of its functions and activities every five years in line with terms of reference set in consultation with FCAC.