Established in 1996 as an alternative to the legal system, we work informally and confidentially to find fair outcomes to unresolved disputes about banking and investment services and products.We are free to consumers. Our funding is provided from a levy on all participating firms.

If we find an error, misleading advice or other maladministration that has caused a loss to a consumer, we may recommend compensation up to a maximum of $350,000 and nonfinancial remedies such as an apology.

Our independence is assured by a board of directors with a majority of independent directors and strong safeguards for our independence and impartiality.

How OBSI works

Our staff, with a wide variety of experience and training in financial services, law, accounting, dispute resolution and regulatory compliance, review unresolved complaints from consumers about banking and investment services and products, such as errors in accounts, poor disclosure and inappropriate advice.

If we find the firm has caused a loss, we will recommend a settlement that aims to make the customer whole. We may also recommend compensation for inconvenience in the appropriate circumstance, or non-financial actions such as correcting a credit record. If we find the firm has acted appropriately, we will write to the customer to explain why we came to that conclusion.

In recent years we have been improving our procedures through new processes and innovation aimed at resolving disputes faster while maintaining the quality and fairness of our conclusions.

When we receive a complaint, our assessment team looks at the file to make sure it falls within our mandate. For instance, the firm has to be one of our participating banks, trust companies, credit unions, investment dealers, mutual fund dealers and managers and scholarship plan dealers. We also look for a final answer from the firm to the consumer, which allows us to start our review knowing the positions of both firm and consumer.

Depending on the file, we might try to resolve the dispute with a facilitated settlement between the client and firm that aims to address the complaint quickly with a fair outcome to both parties. We may use a more formal mediation process. Or it could be a full investigation. If we believe that the facts of the case do not warrant further review, we will let the consumer know quickly. We always make sure that we explain our reasons, just as we do for firms when we are recommending compensation.

In the last three years, we have increased the number of facilitated settlements from nine in 2006 to 91 in 2008 – meaning a quicker resolution for consumers and firms to a dispute they couldn’t resolve by themselves. It’s part of the reason our timeliness has improved steadily in recent years, with 93 per cent of our cases closed within 180 days in 2008, well exceeding our target of closing 80 per cent in that time period.

After reviewing the facts of the case, OBSI will make a decision based on “fairness in the circumstances” to both the client and the firm. We take into account laws, regulations, industry standards and practices as well as any standards established by regulatory bodies, professional associations or the individual firm involved.

As neither a court nor a regulator, OBSI does not fine or discipline firms or individuals. Our recommendations are not binding on either party, but we have an excellent record of acceptance of our recommended settlements from both firms and clients. In 2008 all of our recommendations for compensation were accepted by firms.

While we do not handle matters that have been through a court or an arbitration, if a client is not satisfied with our conclusions, they are free to pursue their case through the legal system, subject to statutory limitation periods.

OBSI’s Commitment to You

The Ombudsman for Banking Services and Investments is committed to achieving excellence in our dispute resolution service. Our standards are designed to ensure a high-quality, independent and fair dispute resolution process for consumers of financial services in Canada.

Our Code of Practice commits us to achieving high standards of excellence in 11 separate areas of our operation and governance including accessibility, fairness and independence, timeliness and competence. These standards were based in part on emerging international complaint-handling standards through the ISO.

We are committed to regular independent reviews of our operations. Our last review, in 2007, found our service to be professional and effective.