Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)Chapter 14 : OmbudsPart 4 : General provisions210. Restrictions on financial institutions in relation to ombud schemes |
| (1) | A financial institution may not describe any internal procedure it has for dealing with or resolving complaints made to it by financial customers as an ombud scheme, or a person that deals with or resolves such complaints as an ombud. |
| (2) | A financial institution must disclose to its financial customers applicable ombud schemes, and how to contact and submit complaints to those schemes, in accordance with Ombud Council rules that may be issued in this regard. |
(3)
| (a) | A financial institution may not require or invite a financial customer to make a complaint to an— |
| (i) | ombud, unless the person so charged with this function is part of a recognised industry ombud scheme or a statutory ombud scheme; or |
| (ii) | ombud scheme, unless the ombud scheme concerned is a recognised industry ombud scheme or a statutory ombud scheme. |
| (b) | A requirement or invitation contrary to paragraph (a) is void. |
| (4) | An ombud scheme may not describe or hold itself out as being a recognised industry ombud scheme in terms of this Part unless it is so recognised. |
| (5) | An ombud scheme may not permit another person to identify it as a recognised industry ombud scheme in terms of this Part, unless it is so recognised. |
| (6) | For the purposes of subsections (3), (4) and (5), an ombud scheme whose recognition has been suspended or revoked is not recognised. |
[Section 210 to take effect on 1 April 2020, per Notice No. 1130 of 2019, GG 42677, dated 30 August 2019]