Complaint structure


The establishment of the office of the Financial Services Ombudsman in Jersey came one step closer on April 1 2014 when the States of Jersey approved the Financial Services Ombudsman (Jersey) Law 201. The law – once approved by the UK Privy Council – will establish an ombudsman in order to adjudicate complaints from customers in relation to financial services provided in Jersey. The ombudsman will be able to make awards to return complainants to the position in which they would have been had the problem not occurred.

Complaint structure

Who will be able to complain?
Parties eligible to complain to the ombudsman include individuals, small businesses, charities, trusts and foundations.

The intention is that the service should be primarily available to those lacking the resources or expertise to use other means in order to resolve complaints. The service will be available to complainants resident anywhere, not just to Jersey residents.

What can complaints be about?
Complaints are restricted to acts in the course of relevant financial services business provided within Jersey. 'Relevant financial services business' is defined broadly. However, certain classes of business that will not be covered by the ombudsman must, after consultation, be exempted by order. A draft order was published on March 21 2014. It exempts all business except for:

• deposit-taking business;
• money service business;
• the business of a functionary relating to a recognised fund;
• general insurance mediation business;
• insurance business;
• investment business;
• pension business;
• credit business; and
• ancillary business relating to the above.

Under the draft order, most trust company business (except that relating to business as listed above), occupational pensions and fund business relating to funds other than recognised funds are outside the scope of the scheme.

A consultation on the order has taken place (the closing date for submissions was May 8 2014).

When must complaints be made?
A complaint must be made to the ombudsman within six years of the act to which it relates or two years after the complainant should have become aware of the cause for complaint. The complaint must relate to an act that occurred after January 1 2010 and the financial services provider must have been given a reasonable opportunity (capped at three months) to consider the complaint.

However, a shorter time limit will apply, so that a complainant must refer the complaint to the ombudsman within six months of receiving a final response on the complaint from the financial services provider, if the provider meets certain requirements for handling complaints. For the shorter limit to apply, the provider must notify clients of the availability of the ombudsman scheme and the six-month time limit. This shorter time limit is likely to mean that financial services providers will amend their procedures accordingly.

What award may ombudsman make?
The ombudsman may require that the financial services provider compensate the complainant for their financial loss and any material distress or inconvenience. The maximum amount that the ombudsman can award will be £150,000.

Is ombudsman's determination binding?
If the person making the complaint accepts the determination it is binding. There is no right of appeal, so no further legal action can be taken on the same subject matter except for judicial review.

How much will the scheme cost and how will it be funded?
The Economic Development Department has estimated that the set-up costs for the scheme will be in the region of £183,000 and that the first year's operating costs will be in the region of £582,000. The Office of the Financial Services Ombudsman will have, at the outset, a three-member board, one part-time ombudsman and a five-person staff.

The scheme will be free to complainants and will be funded by financial services providers. It will be paid for by levies on financial services providers and by case fees charged to providers in respect of complaints against them. A further consultation with industry will cover the proposals for funding in greater detail.

Will Guernsey be involved in the scheme?
A joint Jersey and Guernsey ombudsman scheme will be established from the outset. There will be a shared single office in Jersey, with a shared staff and board. The legislation for the Guernsey scheme is currently being drafted, but is expected to be similar to that of Jersey. There is some precedent for joint Channel Islands initiatives like this – for example, the Channel Islands Competition Regulatory Authority.

When will the scheme begin?
The Economic Development Department considers it unlikely that the scheme will be established before December 2014.

How to prepare for the scheme
Businesses and individuals should consider whether they would like to take advantage of the six-month time limit for complaints to be made and, if so, be prepared to make amendments to client-facing documents in order to notify clients that the scheme is available and to inform them of the six-month time limit. In addition, businesses and individuals should also be ready to ensure that their complaints procedures conform to the model procedure for complaints handling once the ombudsman publishes it.

For further information on this topic please contact Edward Scott at Ogier by telephone (+44 1534 504 000), fax (+44 1534 504 444) or email ( The Ogier website can be accessed at