萬國法律事務所

On January 2, 2012 a new nonprofit agency, the Financial Ombudsman Institution, was formally launched in Taiwan for the purpose of resolving disputes between consumers and financial institutions. The creation of the Financial Ombudsman Institution (FOI) unifies a process that had been divided between several different organizations.

The FOI will hear disputes between consumers and financial services companies, such as banks, brokerage houses, and insurance companies and decide on compensation to be awarded, if any.

Based on the relevant statistics, approximately 1,000 cases had already been transferred to the FOI by groups currently handling the relevant consumer complaints, such as the Bankers Association of the Republic of China and the Taiwan Insurance Institute. Most of these disputes involve the purchases of structured notes.

In accordance with the FOI procedures, hearings will follow a three-stage process, starting with face-to-face mediation, followed by a written assessment, and concluding with the FOI's ruling.

As long as a dispute involves compensation of under NT$ 1 million in an investment dispute and under NT$ 100,000 in a non-investment dispute, the result of the decision made by the FOI will be final, and the financial institutions will not be able to appeal FOI decisions.