OBSI Board welcomes Canadian government’s decision to establish a single ombudsman for banks

Toronto, April 8, 2022 – The Board of Directors for the Ombudsman for Banking Services and Investments (OBSI) welcomed the Federal Government’s decision to establish a single, not-for-profit ombudsman for federally regulated banks announced in yesterday’s budget.

“We applaud the government’s decision to correct our current system that allows banks to choose the ombudsman who will investigate and decide on their customers’ complaints,” said Maureen Jensen, Chair, OBSI. “A single non-profit ombudsman will make the system fair. An ombudsman needs to be a fair arbiter between banks and their customers and if an ombudsman needs to compete for the banks’ business, it puts banks in the position of choosing their own referee.”

OBSI has long argued that a competitive dispute resolution model leads consumers to reasonably question the impartiality and independence of the system. This perception of conflict of interest can undermine public confidence in the financial sector. The only way to improve consumer confidence is to remove ombudsman competition and establish a single, independent, not-for-profit ombudsman dedicated to the public interest.

“Internationally, a single impartial ombudservice is recognized as the best practice,” said Ms. Jensen. “OBSI has over 25 years of experience providing ombudsmanship services to the Canadian financial services sector, and we are committed to working with the government in support of this important initiative, which we strongly believe is in the best interest of both consumers and the financial sector.”

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Canada’s Ombudsman for Banking Services and Investments (OBSI) is a national, independent, not-for-profit organization that helps resolve and reduce disputes between consumers and financial services firms in both official languages. OBSI is responsive to consumer inquiries, conducts fair and accessible investigations of unresolved disputes, and shares its knowledge and expertise with all stakeholders and the public. If a consumer has a complaint against an OBSI participating bank or investment firm that they are not able to resolve with the bank or firm, OBSI will investigate at no cost to the consumer. Where a complaint has merit, OBSI may recommend compensation up to a maximum of $350,000.

For more information, contact:

Mark Wright, Director, Communications and Stakeholder Relations
416-287-2877 ext.2225
publicaffairs@obsi.ca