As an initial step required to explore the viability of merging the Insurance & Financial Ombudsman Scheme (IFSO Scheme) with Financial Services Complaints Ltd (FSCL), both organisations together took legal advice on the possible structure of a merged entity.
Legally, it is complex to merge two differently structured entities (the IFSO Scheme being an incorporated society, while FSCL is a limited liability company). It is also complicated because of the legislation which prevents the use of the name “Ombudsman”, except in extremely limited circumstances, with only the IFSO Scheme having the right to “restructure” under the statute and keep the name “Insurance & Financial Services Ombudsman”.
The legal advice said that the IFSO Scheme must first incorporate as a limited liability company, prior to any merger being possible, in order to be simple, cost-effective and of least disruption to our 3,500 Participants. The IFSO Scheme’s Commission has accepted and agreed with the legal advice, given that it also fully intended to become IFSO Ltd this year anyway, and we will now commence the work required to incorporate as IFSO Ltd, with merger discussions paused.
In the meantime, we will continue to work on providing the best business as usual disputes resolution service we can to our Participants, and support the Minister’s new initiatives to improve dispute resolution for consumers.
We will provide further updates as matters progress.