Thinking | 3 July 2008

Financial Ombudsman Service Update

ASIC releases ‘No Action Position’

Subsequent to our update on 13 June 2008, entitled “Merger of external dispute resolution schemes”, the Australian Securities and Investments Commission (ASIC) has issued a ‘No action letter’ allowing members of the now merged dispute resolution schemes (BFSO, FICS and IOS) to continue to use their current printed product disclosure statements (PDS) and financial services guides (FSG) which refer to the old schemes rather than the new merged entity, the Financial Ombudsman Service (FOS). This position of no action is provided that the FSGs and PDSs were printed prior to 1 July 2008.

Automatic updating of ASIC registry

In addition, members of the merged schemes are reminded that FOS and ASIC have agreed that provided a current member’s FOS membership application form is returned to FOS before 31 July 2008, FOS will provide ASIC with details of its new members and ASIC will update the ASIC Australian Financial Services licensee register to show that particular licensees have become members of FOS.

This means that individual licensees who return their membership form by 31 July do nothave to notify ASIC of their membership of FOS. However, FICS has encouraged members to return their forms to FOS as soon as possible, well before 31 July 2008.

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Harry New

Harry leads our financial services team and focuses extensively on financial services law and corporate advisory.

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