PROPOSED AMENDMENTS

FINANCIAL SERVICES OMBUD SCHEMES BILL [B20 - 2004]

LONG TITLE

1 On page 2, from the fourth line, to omit "the Ombud for Financial Services Providers" and to substitute:

Offices of Ombuds established by law

2 On page 2, in the last line, after "resolution:" to insert:

to empower the Ombud for Financial Services Providers to act as a statutory ombud in certain cases;

CLAUSE 1

1 On page 2, in line 4, to omit "(1 )".

2 On page 2, after line 38, to insert:

"Ombud for Financial Services Providers" means the Ombud for Financial Services Providers appointed in terms of section 21(1)(a) of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002), and includes a deputy ombud appointed in terms of section 21(1 ){b) of that Act;

3 On page 3, from line 18, to omit ", appointed in terms of section 21(1)(a) of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002), and includes a deputy ombud appointed in terms of section 21(1 )(b) of that Act" and to substitute: acting in the capacity contemplated in section 14

4 On page 3, from line 18, to omit paragraph (b) and to substitute:

(b) any determination, decision, requirement or condition made, determined or imposed, and any notice published, by the Minister, the Council or the board, under this Act.

CLAUSE 2

1 On page 3, in line 27, to omit "(1 )".

CLAUSE 3

1 On page 3, in line 32, after "and" to insert "at least three".

2 On page 3, from line 33, to omit paragraph (a) and to substitute:

  1. A member shall be appointed with due regard to the person's knowledge, experience and expertise with reference to the matters to which the Council has been established, and not as a representative of any sector of the financial services industry.

3 On page 3, in line 36, to omit "The majority of members of the Council must not" and to substitute "Not more than two members may".

4 On page 3, in line 39, after "registrar" to add:

, without voting power on matters which the registrar is to be advised by the Council

CLAUSE 5

1 On page 3, in line 53, after "dishonesty" to insert ",".

2 On page 3, in line 55, to omit "R100" and to substitute "the prescribed amount".

3 On page 4, from line 9, to omit all the words after "office" to the end of the Clause and to substitute:

the Minister must appoint a person appointed under section 3(1) to act in the place of such member for the unexpired period of term of office where required to maintain a quorum

CLAUSE 6

1 On page 4, in line 14, after "(2)" to insert "(a)".

2 On page 4, after line 16, to add:

(b) Five appointed members form a quorum.

CLAUSE 7

1 On page 4, in line 23, to omit "board" and to substitute:

Minister, after consultation with the board,

2 On page 4, in line 24, to omit "all reasonable expenses" and to substitute "expenditure".

CLAUSE 8

1 On page 4, in line 41, after "Adjudicator" to insert ", the Ombud for Financial Services Providers".

CLAUSE 10

1 On page 5, in line 34, to omit "the public can be made" and to substitute:

the scheme and its participants can make the public

CLAUSE 12

1 On page 6, in line 7, after "withdraw" to insert "a".

CLAUSE 13

1 On page 6, in line 26, after "(2)" to insert "(a)".

2 On page 6, after line 30, to add:

"{b) A complaint received by an ombud of a recognised scheme in respect of which the Adjudicator, the Ombud for Financial Services Providers or statutory ombud has in terms of a law jurisdiction-

(i) must be forwarded immediately to the Adjudicator, the Ombud for Financial Services Providers or statutory ombud, as the case may be: and

(ii) the ombud must inform the client accordingly,

3 On page 6, in line 32, after "Adjudicator" to insert ", Ombud for Financial Services Providers".

4 On page 6, in line 33, after "complaint" to insert: and the relevant ombud must inform the client accordingly

5 On page 6, in line 34, after "Adjudicator" to insert ", Ombud for Financial Services Providers".

6 On page 6, in line 36, after "complaint" to insert: and inform the client accordingly

CLAUSE 14

1 On page 6, in line 38, to omit "section 13" and to substitute "sections 13 and 19".

2 On page 6, in line 39, to omit "subsection (2)" and to substitute "subsections (2), (3) and (4)".

3 On page 6, in line 53, to omit "a" and to substitute "the".

4. On page 26, in line 53, after "board" to insert:

, after consultation with the Council,

CLAUSE 15

1 On page 7, in line 3, to omit "contractual".

2 On page 7, in line 3, after "terms" to insert:

, whether in terms of an agreement or any law,

CLAUSE 17

1 On page 7, in line 27, after "board" to insert "and the Council".

2 On page 7, from line 33, to omit "a recommendation" and to substitute:

its recommendation and that of the Council

CLAUSE 18

1 On page 8, after line 13, to add:

(5)(a) No financial institution may use a name or description in respect of any internal complaint resolution arrangement referred to in paragraph "b" of the definition of "scheme" in section 1, which represents or constitutes a "scheme" as so defined, unless the financial institution-

  1. has been authorised by the Council to do so; and
  2. complies with the conditions determined by the Council.
  1. A financial institution who contravenes any provision of paragraph "a" is guilty of an offence and on conviction liable to a fine not exceeding the prescribed amount.

CLAUSE 19

1 On page 8, after line 16, to insert:

  1. the proceedings and jurisdiction of the statutory ombud regarding the type and category of complaints not justiciable by the statutory ombud, including limitations on amounts involved in justiciable complaints;

2 On page 8, in line 17, to omit "(a)" and to substitute "(b)".

3 On page 8, in line 19, to omit "(b)" and to substitute "(c)".

FSOS BILL AMENDMENTS 27 Sept 2004.doc