OMBUD COUNCIL ANNUAL REPORT 2024/25

PART B: PERFORMANCE INFORMATION

The internal audit of internal financial controls, procurement and contracts management took place in the last quarter of the year and concluded that the finance and SCM controls are adequate in providing reasonable assurance that the risk areas are being properly managed and controlled. The internal audit findings received are not significant and various recommendations made by the internal auditors were useful to the Ombud Council. Most recommendations were implemented by year-end in readiness for the external audit process. The Head of Finance managed both the internal and external audit processes. OUTCOME 4: JURISDICTIONAL GAPS, OVERLAPS AND INCONSISTENCIES BETWEEN SCHEME PROCESSES REDUCED Intended outputs for this outcome included making the Ombud Council’s Regulatory Plan, setting out the nature, type and timelines for the Ombud Council Rules to be made; and meeting 80% of the milestones targeted in the Plan. The Plan targeted final publication of Ombud Council Rules for the Ombud for Financial Services Providers (FAIS Ombud), as well as several milestones for the development of the Ombud Council Rules for the Pension Funds Adjudicator. The target in relation to the Rules for the FAIS Ombud was achieved, but not in relation to Rules for the Pension Funds Adjudicator. This was due to resource constraints and the need for retirement funds and the Pension Funds Adjudicator to prioritise implementation of the “two pot” retirement benefit withdrawal system which was introduced during the year. Targeted informal consultation on the draft Rules for the Pension Funds Adjudicator was, however, undertaken in the third quarter of 2024/25, with the draft Rules circulated to the FSCA’s Market Conduct Committee for comment in the first quarter of 2025/26. The aim of the targeted informal consultations is to refine the content of the draft Rules before formal consultation. Finalisation of these Rules has been deferred to 2025/26. Overall achievement of the Regulatory Plan milestones was 38%, as compared to the targeted 80%. This outcome targeted three outputs: Finalising and implementing a standardised reporting framework for the submission of complaint-related information by industry ombud schemes to the Ombud Council; finalising, agreeing, and communicating a similar reporting framework for statutory schemes; and agreeing a reporting methodology for reporting complaints information to the Minister of Finance. Section 184(d) of the FSR Act OUTCOME 5: DEVELOP CONSISTENT OMBUD SCHEME REPORTING PROCESSES

requires the Ombud Council to keep the Minister of Finance informed of trends in the nature of complaints to ombud schemes, and the conduct of financial institutions giving rise to those complaints. A reporting framework was finalised, setting out consistent and comparable reporting requirements across the schemes. The NFO industry Scheme commenced reporting substantially in line with the framework in the first quarter of 2024/25. The two statutory schemes will formally adopt the reporting framework from the first quarter of 2025/26, although the FAIS Ombud has already commenced reporting substantially in accordance with the framework. In enhancing the level of complaint trend information to be reported going forward, the Ombud Council has agreed with the National Treasury an appropriate reporting format. It was also agreed that an interim reporting framework aligned with this methodology, would be applied for quarter four, which took place. A refined version will be implemented from the first quarter of 2025/26 onwards and included in future quarterly performance reports to the Minister, to align with the timing for the statutory schemes to formally implement the framework. All targets for this outcome have therefore been met. AWARENESS AND EDUCATION INITIATIVES BY STAKEHOLDERS The Ombud Council’s strategy in support of financial inclusion and financial literacy focuses on supporting the consumer education activities of ombud schemes, the FSCA and other key stakeholders. The targeted output to deliver this outcome was therefore to agree a stakeholder engagement plan setting out the Council’s participation in identified awareness and education initiatives with the FSCA and ombud schemes, and to achieve 80% of the deliverables agreed in the Plan. The Council made meaningful progress in implementing financial education and consumer awareness initiatives, although some of the activities differed from those that were originally contemplated in the stakeholder engagement plans, in response to collaboration opportunities that presented themselves during the year. As a result, although approximately 64% of the specific deliverables in the Stakeholder Engagement Plan were achieved, extensive awareness activities were carried out. This resulted in the Ombud Council’s full education and awareness budget being successfully spent, as compared to only 30% of budget being able to be spent in 2023/24. Specific achievements in relation to consumer awareness of and education about the ombud system included the following: OUTCOME 6: ENHANCED CONSUMER AWARENESS OF OMBUD SERVICES THROUGH OMBUD COUNCIL SUPPORT OF

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OMBUD COUNCIL ANNUAL REPORT 2024/25