December 12, 2009
Some people may or may not have already seen this announcement, but on September 10th, 2018, Scotiabank announced that effective November 1st, 2018, the Ombudsman for Banking Services and Investments ("OBSI") would no longer serve as the external ombudsman/dispute resolution body for both Tangerine Bank and The Bank of Nova Scotia, including its federally-regulated bank, trust, and loan company subsidiaries, and ADR Chambers Banking Ombudsman would be the new external ombudsman/dispute resolution body, joining The Toronto-Dominion Bank and Royal Bank of Canada.
Details were not provided on the reason for the change, but they do note that they aim to streamline the complaint resolution process and speed up resolution times. Costs could be an issue, but they don't state that. That makes me wonder if maybe OBSI is too bloated, bureaucratic, and inefficient, or if Scotiabank feels that is decisions aren't in its favour often enough, or if it's come combination of the above?
Details here: http://www.scotiabank.com/corp.....anguage=en
OBSI will, however, continue to serve as the external dispute resolution body for investment-related subsidiaries (i.e., IIROC- and MFDA-regulated distribution entities, investment management firms, etc.), such as Scotia Securities Inc. ("mutual fund dealer"), Scotia Capital Inc. (including Scotia iTRADE, Scotia McLeod, etc.), 1832 Asset Management L.P. (formerly Scotiabank Global Asset Management), and Tangerine Investment Funds. This could because ADR Chambers Banking Ombudsman may only be approved as a dispute resolution body for banking-related activities.
December 12, 2009
This article from the Financial Post speculates on possible reasons for Scotiabank and Tangerine Banking switching to ADR Chambers, chief among them being a proposal by which OBSI proposed to expand its mandate by altering & expanding the definition of a complaint that it can investigate to include issues it finds in the course of its original investigation but which were not necessarily raised by the original complainant. In the article, CIBC's CEO, Victor Dodig, noted that CIBC currently has no plans to move from OBSI as they're "happy where they are." BMO Bank of Montreal was not interviewed for the story.
Interestingly, National Bank of Canada also switched to ADR Chambers Banking Ombudsman in 2018 for banking-related complaints, meaning of the major banks, BMO, CIBC, HSBC, and Manulife are the only majors still using OBSI for banking- and investment-related complaints. DirectCash Bank has been using ADR Chambers Banking Ombudsman for several years.
Provincially-regulated credit unions do not have to have external dispute resolution bodies nor do they have external consumer protection regulators as provincial regulators only regulate things like capital adequacy.
October 21, 2013