Reana Steyn to lead new national financial ombud scheme

Reana Steyn has assumed the role of setting up office for the recently formed National Financial Ombud (NFO) scheme as its first Head Ombud. The NFO was officially launched on March 1, subsequent to approval from the Ombud Council. This novel initiative integrates four ombud schemes in the financial sector: the Credit Ombud, the Ombudsman for Banking Services (OBS), the Ombudsman for Long-term Insurance (OLTI), and the Ombudsman for Short-term Insurance (OSTI), which now function as subdivisions under the umbrella of the NFO.

Earlier this week, Haroon Laher, the chairperson of the NFO’s board, made public Steyn’s designation as the Head Ombud. Laher emphasized Steyn’s extensive experience, which encompasses her time at the OBS, the Credit Ombud, and a prominent insurance company.

“Her qualification as an attorney, coupled with her people management experience and training of staff of the previous schemes, provide her with a unique perspective and skill set that I have no doubt will serve her well in this new role,” said Laher.

Steyn holds a Bachelor of Commerce in Law (BCom Law) and a Bachelor of Laws (LLB) degree. She is a licensed attorney, with approximately nine years of professional experience at the global firm Norton Rose Fulbright. In 2006, she transitioned into the field of credit regulatory compliance, followed by her entry into the Ombuds sector in 2010.

Throughout this period, Steyn occupied roles such as deputy Credit Ombud and senior manager within KPMG’s regulatory and compliance services division. She also served as the inaugural legal adviser at the National Credit Regulator and as a legal adviser for a prominent short-term insurer. In 2017, she achieved the milestone of becoming the Lead Ombudsman for Banking Services, marking her as the first woman to assume this position.

In her role as Head Ombud for the NFO, Steyn is responsible for establishing a robust financial ombud scheme and discerning and implementing strategies aimed at enhancing the NFO’s effectiveness and outcomes to benefit all stakeholders involved.

Laher mentioned that in addition to other responsibilities, the Head Ombud’s role includes supervising all the shared services functions of the new scheme and collaborating with and assisting the four divisional Lead Ombuds.

“The board resolved to have a role dedicated to leading the NFO as a head ombud and chief executive officer. This role will involve, amongst others, developing and implementing the NFO’s strategy and objectives. More importantly, the Head Ombud will represent the NFO to all its stakeholders,” he says.

The NFO’s jurisdiction

The role of the NFO is to aid financial customers to obtain redress for alleged unfair treatment by financial product or service providers, referred to as “participants”, at no cost to the customer.

The participants that fall within the NFO’s jurisdiction are banks, credit providers, short-term insurers (non-life insurance), and long-term insurers (life insurance).

Complaints that were in the process of being dealt with by one of the predecessor schemes before 1 March will be managed to completion by the NFO.

The NFO deals with complaints relating to a financial product or financial service offered by a participant alleging:

• Breach or non-compliance by the participant or its service provider with an agreement, legislation, regulation, or code of conduct binding on the participant, or disputes about the interpretation or application of such agreements or regulations.
• Maladministration, wilful or negligent actions, or failures to act by the participant or its service provider, resulting in or likely to cause harm, prejudice, distress, or significant inconvenience to the individual.
• Unfair treatment by the participant or its service provider.

Complaints that fall under the jurisdiction of the Pension Funds Adjudicator (PFA) or the FAIS Ombud are excluded from the NFO’s jurisdiction, unless the PFA or the FAIS Ombud has declined to deal with the complaint and agreed that the NFO should deal with it. It is also required that the complainant agrees to the NFO handling the complaint and not the PFA or FAIS Ombud.

In addition to above exclusion, the NFO may dismiss a complaint if, prior to its submission, the following has occurred:

• the complainant has initiated legal proceedings against the participant that have not been withdrawn;
• mediation, conciliation, or arbitration has produced an outcome, unless in the opinion of an Ombud, the participant acted in bad faith in securing the resolution of the complaint;
• a determination has been made by the NFO or its predecessor, unless new evidence has become available that will affect the outcome of a previous ruling;
• the participant has instituted legal proceedings, unless an Ombud deems it appropriate to accept the complaint; and
• three or more years have lapsed from the date the complainant became aware that there was cause to complain, unless in the Ombud’s opinion, the complainant could not be blamed for not submitting the complaint within the prescribed period.

How to lodge a complaint

Before submitting a complaint to the NFO, the complainant must first follow the participant’s internal complaints process.

“During this process, it is important to ask for a complaint reference number, if they have this in place. Complainants also need to allow the institution 20 working days in to respond to their complaint,” states the ombud scheme.

The NFO is available to assist consumers who are unable to log their complaints themselves and will forward such complaints to the participants.

If the complainant is dissatisfied with the outcome of the decision by the participant, the complaint may submit a complaint to the NFO.

It is important to note that complaints must be made within three years from the date the complainant became aware or should have reasonably been aware that there was cause to complain. Failure to make a complaint within three years will result in the complaint prescribing.

A complaint may be submitted to the NFO by:

• using the NFO’s online complaint form;
• emailing info@nfosa.co.za;
• phoning 0860 800 900;
• WhatsApp at 066 473 0157; or
• visiting the NFO’s offices in Johannesburg or Cape Town.