OMBUD COUNCIL ANNUAL REPORT 2024/25

PART B: PERFORMANCE INFORMATION

3.7 OUTCOME 7: ENHANCED CONSUMER AWARENESS OF OMBUD SERVICES THROUGH OMBUD COUNCIL SUPPORT

3.8 OUTCOME 8: IMPLEMENTATION OF REGULATORY AND INSTITUTIONAL REFORM OF THE OMBUD SYSTEM IS WELL-MANAGED The Ombud Council continues to be a proactive contributor to the structural and policy reforms of the financial sector ombud system being driven by the National Treasury, which we strongly support. A highlight during the year was marking the first anniversary of the new, overarching NFO, which replaced four previously recognised industry ombud schemes when it was recognised by the Ombud Council in March 2024, ensuring a simpler, more accessible dispute resolution framework for the financial customers of banks, life and non-life insurers, and credit providers. The establishment of the NFO is a vital step in the transition toward the broader reforms announced by the National Treasury in its policy paper “A simpler, stronger, financial sector ombud system” (February 2024). The Ombud Council has worked closely with the National Treasury, the FSCA and the World Bank Group to develop new legislative proposals to give effect to this policy reform. A transition plan for implementation of the reforms can be developed once the timelines for this legislation are clearer and key stakeholders have been consulted on its provisions – processes being led by the National Treasury. SUPERVISION FRAMEWORK IS IN PLACE TO IDENTIFY NON-COMPLIANCE OR POOR PERFORMANCE OF SCHEMES Ombud scheme oversight through on-site inspections and several ad hoc engagements with schemes took place throughout the year. The Ombud Council’s supervision plan target to perform four inspections was met. 3.9 OUTCOME 9: AN EFFECTIVE

OF AWARENESS AND EDUCATION INITIATIVES BY STAKEHOLDERS

Although the overarching goal of active participation in awareness/education activities of ombud schemes and the FSCA was achieved, with a wide range of collaborative consumer awareness activities being undertaken, the specific deliverables set out in the stakeholder engagement plans the Ombud Council entered into with the FSCA and the ombud schemes were only partially achieved. Progress on this outcome however showed a significant improvement over 2023/24, with the Ombud Council successfully spending its full education and awareness budget for the year, as compared to only 30% of budget being able to be spent in 2023/24. A disappointment however was that the Ombud Council was not able to spend an additional amount of R13.8 million in approved retained surplus from the 2023/24 financial year, which had been earmarked for additional awareness and education expenditure. This was due to a combination of a lack of resources and procurement time constraints, as the retention approval was only obtained in the third quarter of the year leaving insufficient time to conclude meaningful initiatives. The Ombud Council is in a strong position to further enhance delivery of this part of our mandate in future years, building on a collaborative consumer education and awareness business model designed for the Council by the GTAC, which was completed during the year under review. A Communications Officer, with dedicated responsibility for these deliverables, has also been appointed. We are also active members of the National Treasury led National Financial Consumer Education Committee.

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OMBUD COUNCIL ANNUAL REPORT 2024/25