Reana Steyn appointed to lead new National Financial Ombud scheme

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Reana Steyn (pictured) has taken on the responsibility of setting up the office for the recently established National Financial Ombud (NFO) scheme as the inaugural Head Ombud.

The NFO officially launched on 1 March, following approval from the Ombud Council. This new scheme combines four financial sector ombud schemes: the Credit Ombud, the Ombudsman for Banking Services (OBS), the Ombudsman for Long-term Insurance (OLTI), and the Ombudsman for Short-term Insurance (OSTI), which now operate as divisions within the NFO.

Read: New National Financial Ombud scheme launches

Earlier this week, Haroon Laher, the chairperson of NFO’s board, announced Steyn’s appointment as the Head Ombud. Laher highlighted Steyn’s wealth of experience, including her tenure at the OBS, the Credit Ombud, and a major insurer.

“Her qualification as an attorney, coupled with her people management experience and training of staff of the previous schemes, provide her with a unique perspective and skill set that I have no doubt will serve her well in this new role,” said Laher.

Steyn has a BCom (Law) and an LLB and is an admitted attorney, having spent about nine years of her career at the international firm of Norton Rose Fulbright, before she entered the credit regulatory compliance arena in 2006 and in 2010, the Ombuds world.

During this time, Steyn held positions such as the deputy Credit Ombud and senior manager in the regulatory and compliance services division at KPMG, was the first legal adviser at the National Credit Regulator, as well as a legal adviser for a leading short-term insurer. In 2017, she was appointed as Lead Ombudsman for Banking Services – the first woman to hold the position.

As Head Ombud for the NFO, Steyn is tasked with building an effective financial ombud scheme and identifying and delivering initiatives that will improve the performance and outcomes of the NFO for all its stakeholders.

According to Laher, the role of the Head Ombud is also to oversee all the shared services functions of the new scheme and to work with and support the four divisional Lead Ombuds.

“The board resolved to have a role dedicated to leading the NFO as a head ombud and chief executive officer. This role will involve, amongst others, developing and implementing the NFO’s strategy and objectives. More importantly, the Head Ombud will represent the NFO to all its stakeholders,” he says.

The NFO’s jurisdiction

The role of the NFO is to aid financial customers to obtain redress for alleged unfair treatment by financial product or service providers, referred to as “participants”, at no cost to the customer.

The participants that fall within the NFO’s jurisdiction are banks, credit providers, short-term insurers (non-life insurance), and long-term insurers (life insurance).

Complaints that were in the process of being dealt with by one of the predecessor schemes before 1 March will be managed to completion by the NFO.

The NFO deals with complaints relating to a financial product or financial service offered by a participant alleging:

  • Breach or non-compliance by the participant or its service provider with an agreement, legislation, regulation, or code of conduct binding on the participant, or disputes about the interpretation or application of such agreements or regulations.
  • Maladministration, wilful or negligent actions, or failures to act by the participant or its service provider, resulting in or likely to cause harm, prejudice, distress, or significant inconvenience to the individual.
  • Unfair treatment by the participant or its service provider.

Complaints that fall under the jurisdiction of the Pension Funds Adjudicator (PFA) or the FAIS Ombud are excluded from the NFO’s jurisdiction, unless the PFA or the FAIS Ombud has declined to deal with the complaint and agreed that the NFO should deal with it. It is also required that the complainant agrees to the NFO handling the complaint and not the PFA or FAIS Ombud.

In addition to above exclusion, the NFO may dismiss a complaint if, prior to its submission, the following has occurred:

  • the complainant has initiated legal proceedings against the participant that have not been withdrawn;
  • mediation, conciliation, or arbitration has produced an outcome, unless in the opinion of an Ombud, the participant acted in bad faith in securing the resolution of the complaint;
  • a determination has been made by the NFO or its predecessor, unless new evidence has become available that will affect the outcome of a previous ruling;
  • the participant has instituted legal proceedings, unless an Ombud deems it appropriate to accept the complaint; and
  • three or more years have lapsed from the date the complainant became aware that there was cause to complain, unless in the Ombud’s opinion, the complainant could not be blamed for not submitting the complaint within the prescribed period.

How to lodge a complaint

Before submitting a complaint to the NFO, the complainant must first follow the participant’s internal complaints process.

“During this process, it is important to ask for a complaint reference number, if they have this in place. Complainants also need to allow the institution 20 working days in to respond to their complaint,” states the ombud scheme.

The NFO is available to assist consumers who are unable to log their complaints themselves and will forward such complaints to the participants.

If the complainant is dissatisfied with the outcome of the decision by the participant, the complaint may submit a complaint to the NFO.

It is important to note that complaints must be made within three years from the date the complainant became aware or should have reasonably been aware that there was cause to complain. Failure to make a complaint within three years will result in the complaint prescribing.

A complaint may be submitted to the NFO by: