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News
From Brussels…
It’s important that we keep abreast of
what’s happening in Europe. Here, Caroline
Mitchell brings us the latest on what’s
happening in the wider world that affects
our schemes.
EU proposals on alternative
dispute resolution (ADR)
In November last year, the EU Commissioner for
Consumers announced a proposal for a directive on
ADR for consumers and a proposal for a regulation on
online dispute resolution (ODR) in consumer disputes.
The ADR directive aims to ensure an easy and
inexpensive way to resolve a dispute with a service
provider or trader based anywhere in Europe. This
includes complaints filed by consumers against traders
but also complaints filed by traders against consumers
(there would be clear difficulty here for existing
ombudsman schemes with no power to make awards
against consumers). The proposed directive is not
prescriptive as
to the method of
ADR (mediation,
arbitration and
so on) to be
employed, but
it would require
existing gaps in
ADR coverage to
be filled.
The ODR
regulation will
create a single
online platform
to resolve
e-commerce
disputes with
traders from any
other EU country,
conducted
online and in the
consumer’s own
language.
These are important initiatives to improve the
functioning of the internal market. But they will present
challenges. For example, as currently drafted, the
proposal is that all ADR disputes should be resolved
within 90 days. This is not practicable for many
complaints – for instance those where expert evidence
must be obtained or which raise highly contentious
issues. The ODR regulation provides for complaints to
be resolved within 30 days.
ADR entities should respect the quality principles
of impartiality, transparency, effectiveness and
fairness. These are similar to, but do not go as far
as, the Ombudsman Association’s principles of good
complaint handling.
The proposals are currently being negotiated in the
European Parliament and among the member states,
and are likely to be adopted (with modifications) in
October. Member state governments would have to
implement them by 2014/15.
EIOPA – guidelines on
complaint handling
The European Insurance and Occupational
Pensions Authority (EIOPA) has consulted on
proposed guidelines on complaint handling by
insurance undertakings and also on a draft report on
best practice
in handling
complaints.
EIOPA is one
of the three
new European
supervisory
authorities in the
financial sector.
The guidelines,
which should
receive final
approval in
June, will not be
binding. National
regulators will,
however, be
under a ‘comply
or explain’
obligation.
The proposed
guidelines
and best
practice are largely based on existing FSA rules, with
requirements for root cause analysis, ADR referral rights,
publication of complaint procedures and fair resolution
of complaints.
The Ombudsman 46 May 2012
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