Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced the designation of the Ombudsman for Banking Services and Investments (OBSI) to serve as Canada's single external complaints body for banking.
The designation is based on the recommendation of the Financial Consumer Agency of Canada (FCAC), following an open and transparent application process. OBSI will assume its responsibilities as Canada's single external complaints body (ECB) on November 1, 2024, following a transition period of 12 months.
During the transition period, Canada's two existing ECBs - OBSI and the ADR Chambers Banking Ombuds Office - will continue to be responsible for handling banking complaints and complying with their obligations to consumers. FCAC will continue to supervise the existing ECBs and monitor their operations and compliance with applicable legal requirements, to ensure a smooth transition with minimal impact on consumers.
The move to a single ECB addresses findings from FCAC's 2020 report on the Operations of External Complaints Bodies, which concluded that consumers face delays and complications when escalating their banking complaints. FCAC also found that Canada's current multiple-ECB model introduces inefficiencies and complexities and is not consistent with international standards.
OBSI is a national, independent and not-for-profit organization that has been assisting Canadian banking consumers in resolving disputes for over 25 years. As the single ECB, OBSI will be responsible for providing a fair and impartial external process for consumers whose complaints have not been resolved to their satisfaction or dealt with in a timely manner by banks.
