CIFO releases report for 2018

Posted: 14/06/2019

CIFO report 2018The Channel Islands Financial Ombudsman (CIFO), set up in 2015 to resolve complaints about financial services provided in or from the Channel Islands, has released its annual report and accounts for 2018.
 
• CIFO received 434 new complaints – while this is fewer than the previous year, 239 new case files were opened for investigation during the year, 21% higher than in 2017
• CIFO resolved 115 complaints – 75% (86) with CIFO bringing the complainant and the financial services provider to an agreed solution; 25% (29) requiring the full powers of the Ombudsman to issue a binding decision on the outcome
• 58% of complaints were resolved in favour of the customer
• 35% were resolved in favour of the financial services provider 
• 7% were withdrawn by the complainants
• The average amount of compensation awarded was £13,231

Current accounts continue to be the most complained about type of product or service, followed by investments, financial advice, mortgages, health insurance, private pensions and loans. The top four issues in complaints were:
• Poor administration or delay
• Fees/charges
• Mis-selling
• Closure of account

Perspectives from the Chair

David Thomas, Chair of the Board of Directors, commented: “2018 was the third full year of CIFO’s operation resolving complaints about financial services as an informal alternative to the courts. This was a year of increased workload, extensive stakeholder consultations to review CIFO’s funding structure and the first court challenge to an ombudsman decision.

“We were pleased to conclude the four-stage review of CIFO’s funding structure during 2018, with stakeholders supporting plans for pan-Channel Island annual levies to reflect the combined operation of the ombudsman roles in Guernsey, Alderney, Sark and Jersey. 

"Subject to the legislation required from the States of Guernsey and the States of Jersey, we plan to implement the new funding structure from January 2020.

“A judicial review of a binding decision made by the Ombudsman was initiated by a provider in 2018. In early 2019 the Jersey Royal Court rejected the challenge on all counts, finding that the Ombudsman’s decision was sound in both substance and process. The threat of such challenges affects our aim to resolve cases quickly and informally, but we welcome being held accountable for the performance of our statutory powers.”

• The annual report can be viewed here

Public events

CIFO is holding public events in Guernsey and in Jersey to mark the publication of the 2018 annual report and accounts:
• Wednesday 17 July, 8.30am, Jersey Royal Yacht Hotel
• Tuesday 16 July, 8.30, Guernsey St James Concert & Assembly Hall

Click here to register


Add a Comment

  • *
  • *
  • *
  • *
  • Submit

Want to know when we publish new content?

All you need to do is sign up for our newsletter.You'll receive a daily summary email of new items which have been published.

Please be advised that the volume of Business News articles which we publish is fairly high and you should expect to receive an email most days.

You can update your preferences at any time by registering for a blglobal.co.uk account and visiting the 'Your Profile' page.



Subscribe

It's easy to stay current with blglobal.co.uk.

Just sign up for our email updates!

Yes please! No thanks!