OMBUD COUNCIL ANNUAL REPORT 2024/25

PART A: GENERAL INFORMATION

The establishment of the current NFO is only a first step in the reform of the ombud system. The Ombud Council has continued to worked closely with the National Treasury, the World Bank and the FSCA in developing an outline for draft legislation that will give effect to a broader scope for the NFO Scheme (notably merging the functions of the FAIS Ombud into the NFO); and strengthening the NFO’s reach and effectiveness through an appropriate statutory underpin. The intention is to have a dedicated legislative framework for implementing the ombud system reforms prepared, to complement the overarching consumer protection framework that will be introduced by the Conduct of Financial Institutions Bill once promulgated. Further streamlining was achieved through the development of a comprehensive complaint data reporting framework, setting consistent and comparable complaint data reporting requirements across the NFO and both statutory ombud schemes, the FAIS Ombud and the Pension Funds Adjudicator. Going forward, the data gathered through this framework will enable the Ombud Council to meet its obligation to identify and report complaint trends, and the conduct of financial institutions giving rise to these trends, to the Minister of Finance and financial sector regulators. ENHANCING AWARENESS OF THE OMBUD SYSTEM After the capacity constraints of previous years, I am pleased to highlight meaningful progress in delivering on the Ombud Council’s statutory responsibility to promote awareness of and publicise the ombud system, and in this way support financial inclusion. The Council’s approach to this part of our mandate is to partner with the consumer education initiatives of the FSCA, the ombud schemes and other stakeholders, through collaborative consumer awareness and education initiatives. In the year under review, this included developing and funding a multi phase, multi-media advertising campaign for the schemes comprising the financial sector ombud system, including creating awareness of the new NFO, as well as a range of other published and in-person awareness and outreach activities. This part of our mandate is a priority for future years, with our five-year Strategic Plan for 2025 to 2030 including a dedicated programme. OPERATIONAL STABILISATION AND AUTONOMY As reported last year, by the close of 2023/2024 the Ombud Council had finalised our own financial, supply chain, human resources, and other key policies and processes. These have been fully implemented in the 2024/25 financial year, with the Ombud Council now operating autonomously, after being supported by the FSCSA in prior years. The year under review also marked the Ombud Council’s first year of being funded solely by levies paid by financial institutions in accordance with the Financial Sector and Deposit Insurance

Levies Act, 2022, and the filling of all planned positions in our organisational structure by year end. The Ombud Council recorded a surplus for the 2024/25 financial year of R4.39 million, having spent 86% of its budgeted expenditure. As detailed in our Annual Financial Statements, the surplus is attributable to receipt of 4% more in levy income than anticipated, and some operational underspend mainly due to staff recruitment delays. This compares favourably to a low expenditure base in 2023/2024 which culminated in a substantial surplus in that year. I am proud to report that the Ombud Council’s external auditors have confirmed a clean audit opinion for the Ombud Council for the 2024/25 financial year, following a similar result in 2023/24. This was the first time that the Council’s own processes and controls were subject to audit scrutiny, as compared to the prior year when we were largely reliant on FSCA processes, and the favourable audit outcome confirms that these processes are robust. Financial year 2024/25 therefore presents an appropriate and credible baseline against which to measure the Ombud Council’s future delivery of the objectives we have set ourselves in our first five-year Strategic Plan for 2025 to 2030. APPRECIATION The progress the Ombud Council has made to date would not have been possible without the commitment and positivity of the Ombud Council team. This small group of dedicated colleagues ensure that the Ombud Council operates at a level of professionalism many much larger entities struggle to attain. I also thank Ms. Eileen Meyer, the Chairperson of the Board of the Ombud Council, and its Accounting Authority, as well as the other members of our Board and governance committees, for their ongoing guidance, support and confidence in the Ombud Council’s mission. Lastly, a word of appreciation to the financial sector Ombud schemes themselves, for their co-operation with the Ombud Council and their ongoing commitment to ensuring fair treatment of the financial customers who turn to them for help. The Ombud Council is now firmly focused on the next phase of our journey toward an increasingly accessible, trusted ombud system that drives fairer outcomes for all financial customers.

Ms. Leanne Jackson Chief Ombud Ombud Council

7

OMBUD COUNCIL ANNUAL REPORT 2024/25