Ombud Council AR 2026

PART B: PERFORMANCE INFORMATION

2.3.2. Draft Financial Sector Ombud System Amendment Bill Full implementation of the above proposed reforms will require legislative amendments. As discussed in more detail in paragraph 4.2.1 below, the Council is working closely with the National Treasury and the FSCA, to develop a draft Financial Sector Ombud System Amendment Bill to propose a framework to give effect to these changes. Subject to necessary legislative processes, it is currently envisaged that this Bill will amend the ombud-related provisions of the FSR Act, with further consultation to take place at an appropriate time after the finalisation of the COFI Bill. 2.3.3. Conduct of Financial Institutions (COFI) Bill and interim amendments to the FSR Act The new activity-based licensing framework for financial institutions that is expected to be introduced together with the COFI Bill, broadening the scope of financial products and services that will be subject to oversight by the FSCA, will, if adopted, require the ombud system to adapt to ensure concomitant broader coverage of complaints. This has implications for the jurisdiction of current schemes and the Council’s designation functions. The COFI Bill is also expected to provide uniform definitions of ‘complaint’ and ‘complainant’, helping to resolve current inconsistencies across ombud schemes.

In anticipation of the COFI framework, the Council is working with the FSCA to help shape COFI subordinate legislation governing complaint handling by financial institutions and their interactions with ombud schemes. The COFI Bill, as currently framed, includes several consequential amendments to Chapter 14 of the FSR Act, the Council’s founding legislation. These include moving the provisions establishing the two current statutory schemes, the FAIS Ombud, and the Pension Funds Adjudicator from their current founding statutes to the FSR Act. Amendments to the jurisdiction and governance processes of the two schemes, aimed at greater alignment between them, are also proposed, impacting the Council’s responsibilities. If implemented, these provisions will facilitate the Council’s current work on promoting cooperation and coordination of ombud activities, as required by section 177(1)(b) of the FSR Act. The Council therefore welcomes the fact that the COFI Bill has been approved by the Cabinet for submission to Parliament and looks forward to confirmation of the final provisions of this key law once the Parliamentary process unfolds.

Ombud Council 2025/26 Annual Report

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