Is it working?

The consolidation is conceptually strong and aligns with international best practice: consumers gain a single, recognisable redress body; firms face more consistent expectations; and regulators get clearer sight of systemic conduct‑risk themes. However, implementation has been slower than originally envisaged and the ultimate success will hinge on execution details – preserving independence and expertise, handling legacy caseloads, and ensuring sufficient sustainable funding without compromising accessibility.

Actions

Actions already taken include: (i) embedding the legal basis for ombud schemes and a single recognised scheme in the FSR Act; (ii) FSCA and National Treasury policy work and consultations on the future ombud landscape, including draft frameworks for a National Financial Ombud Scheme; (iii) signalling, in budget and regulatory‑strategy documents, that the four main existing ombud schemes will be consolidated into the NFO; and (iv) preparatory engagement with the current ombud offices on governance, funding and migration of staff, case backlogs and systems into the new entity.

Are there plans?

Planned steps include: (i) finalising the ombud‑scheme rules and recognition framework under the FSR Act (and, once enacted, COFI), including governance, funding, accountability and reporting requirements for the NFO; (ii) concluding legal and operational arrangements for the merger/transfer of existing ombud offices into the NFO; (iii) designing a unified case‑management system, including digital channels and interfaces with firms’ internal complaint processes; and (iv) implementing a national communications campaign so that consumers and intermediaries know to use the NFO as the single entry point for financial complaints.

Is it on the agenda?

The 2026 Budget Review identifies the NFO as a key element of the conduct and consumer‑protection reform agenda, alongside COFI and the deposit‑insurance rollout. It notes that consolidating the financial‑ombud landscape into a single scheme will simplify redress for consumers, reduce duplication and improve coordination with the FSCA’s supervisory and enforcement work. Public and industry updates on COFI and the FSCA Regulatory Strategy confirm that establishing and designating the NFO is a priority for 2025–2026. Once operational, the NFO is expected to: (i) offer free or low‑cost dispute resolution to consumers after they have exhausted internal complaints procedures with their providers; (ii) issue determinations that are binding on firms (within defined monetary limits), with appeal rights structured to balance fairness and finality; (iii) provide systemic‑issue feedback to the FSCA and National Treasury, informing conduct standards and supervision; and (iv) contribute to financial‑literacy and awareness efforts by publishing anonymised case studies and guidance on common issues.

Goals

To create a single, independent, statutory financial‑ombud scheme that consolidates existing ombud offices into one coherent redress system, giving consumers simple, low‑cost access to binding dispute resolution across all retail financial products and services.

References

• Reference Link One
• Reference Link Two
• Reference Link Three

Departments / Govt Institutions

Financial Sector Conduct Authority (FSCA) National Treasury