NS&I joins Financial Ombudsman Service
NS&I signed up to the Banking Code in March 2003.
From 1 September, complaints about NS&I products and services will be handled by the FOS using the same approach as applies to other financial service providers under the compulsory scheme.
NS&I is one of the UK’s largest financial providers, with a customer base of 26 million people and a record £69 billion invested. Its flagship products include Premium Bonds - offering customers the chance to win over one million tax-free prizes every month from £50 to two £1 million prizes – and Index-linked Savings certificates which guarantee inflation-beating, tax-free returns.
Customer benefits
Under the FOS’s jurisdiction, NS&I’s complaints procedure will be streamlined to achieve greater clarity and transparency and to deliver greater simplicity for customers, who will have access to the same dispute resolution process as other financial service providers. Customers will also be given clear timelines within which complaints will be handled.
Current complaints procedure
Currently, complaints unresolved through NS&I’s internal complaints procedures are dealt with by either the Independent Adjudicator for NS&I or the Parliamentary Commissioner for Administration. The Adjudicator deals with unresolved complaints about legal entitlements and the application of product terms and conditions while the latter deals with unresolved complaints about maladministration.
From 1 September 2005, the role of the Adjudicator will be abolished and responsibility will be transferred to the FOS.
The Parliamentary Commissioner for Administration will continue to have responsibility for cases of maladministration until the Parliamentary Ombudsman jurisdiction is amended. This requires a change in secondary legislation, which is expected to take place later in the year.
Continuing transformation
NS&I joining the FOS is part of its continuing transformation and signifies a further move by NS&I to strengthen its position in the retail financial services industry. It aims to be the leading and most trusted savings and investments organisation in the UK.
Alan Cook, chief executive of NS&I said:
“Joining the Financial Ombudsman Service voluntary jurisdiction scheme demonstrates our commitment to meeting industry best practice and ensuring greater transparency and improved communications between us and our customers.
“Over the years, we have introduced a number of changes and developments to bring our organisation into line with the UK retail financial services including subscribing to the Banking Code and it is very important that, whilst keeping our uniqueness, we do meet the standards expected of the mainstream financial services industry.”
Finance Act Clause 69 of the Finance Act2 provided for the abolition of the statutory adjudicator for National Savings and Investments and facilitated the transfer of responsibility to the voluntary jurisdiction of the Financial Ombudsman Service.
The clause comes into force on 1 September 2005. Furthermore, to allow for NS&I to join the Financial Ombudsman Service's voluntary jurisdiction, the FSA handbook3 was amended (following consultation).
Notes to editors
- NS&I aims to resolve customer complaints within a maximum of eight weeks. Customers can pursue their complaints through the FOS if they have not been resolved through NS&I’s internal complaints procedure.
- Full text of the Finance Act is available in pdf format: (http://www.publications.parliament.uk/pa/ld200506/ldbills/013/2006013.pdf)
- Full details of amendments to the FSA handbook can be found on pages 3 and 4 of the feedback document (http://www.financial-ombudsman.org.uk/news/NSI-VJ-feedback.pdf)
- NS&I is one of the UK’s largest financial providers, with a customer base of 26 million people and a record £69 billion invested. It remains unique in that it provides retail savings and investments that are 100% secure, backed by HM Treasury. Its total balance of funds now represents 18% of the national debt and NS&I is a part of the mainstream financial services industry.
- The Financial Ombudsman Service (FOS) provides customers with a free, independent service for resolving disputes with financial firms. The FOS has two separate jurisdictions under the Financial Services and Markets Act 2000: A compulsory jurisdiction, which applies to unresolved complaints about specified financial services activities in relation to the financial firms that are regulated by the FSA.
A voluntary jurisdiction, which applies to unresolved complaints about specified financial services activities in relation to the financial firms that provide them, if the firms concerned choose to join.