Letters (November 01, 2000)

Dear Editor,

I am writing with respect to your editorial which appeared in the August, 2000 issue of CU. I wish to correct your statement that I am opposed to the concept of a national financial services ombudsman.

The federal government has taken an important first step in proposing the Canadian Financial Services Ombudsman. While the federal government has jurisdiction in the area of banking and the solvency of federally-registered insurance companies, issues of market conduct fall within provincial jurisdiction.

Provincial regulators have a real interest, and long history, in consumer redress services, having successfully developed and operated a range of complaint handling and dispute resolution mechanisms. While provincial regulators support measures to empower and protect consumers, we believe that responsibility for market conduct matters should continue to rest with provincial and territorial governments. We do not believe that the federal proposal is comprehensive, and thus, have resolved to design a system that is readily accessible to financial services consumers across Canada and that encompasses programs already in existence. The Joint Forum of Financial Services Regulators intends to work with consumers, industry participants and federal officials to create comprehensive financial services dispute resolution framework to reflect the harmonization taking place across financial services sectors.

The goal of the Financial Services Commission of Ontario and other provincial regulators is not, as you suggest, to build empires. We intend to examine the federal ombudsman proposal and identify any remaining gaps in consumer protection and dispute resolution. Again, our objective is to create a national, comprehensive network of dispute resolution services that will be available to all consumers of Canadian financial services.

Yours truly,

Dina Palozzi, CEO and Superintendent of Financial Services, FSCO