Consumer: FOS - Financial Ombudsman Service
The Financial Ombudsman Service (FOS) is an external dispute resolution (EDR) scheme that was established to provide free advice and assistance to consumers to help them in resolving complaints relating to members of the financial services industry, including life insurance, pooled superannuation trusts, funds management, financial advice, stock broking, investment advice and sales of financial or investment products. There is no charge to consumers for any service provided by FOS in handling complaints. FOS is a national service.
http://www.fos.org.au/centric/homepage/aboutus/termsofreference.jsp
The financial services regulator, the Australian Securities and Investments Commission (ASIC), issue Australian Financial Services Licenses (AFSL) to providers of financial services. One of the conditions of an AFSL is that the license holder must be a member of an approved External Dispute Resolution (EDR) scheme if they are dealing with retail clients. FOS is an approved EDR scheme.
As at the end of 2004 there were in excess of 2,500 providers of financial services who have nominated FOS as their EDR scheme. They are referred to as "Members" of FOS
The FOS process aims, in the first instance, to resolve complaints by mutual agreement between the parties. If this is not possible, the matter can be referred to the Panel or the Adjudicator who, pursuant to our Rules, has the ability to make a formal determination which is binding on the Member.
FOS role and terms of reference are specified in the Rules.