Inside Biz | Serving the Nation through Alternative Dispute Resolution (ADR)

By Andile Ndzabandzaba (Research & Communications Officer OFS)

The upcoming month of February is commonly celebrated as the month of love. Many people invest time and effort in finding ways to express love to their partners on Valentine’s Day. For others, however, Valentine’s Day may be an opportunity to celebrate alternative expressions of love. There are often unique views, experiences, and approaches to expressing love during this month. Similarly, the Ombudsman of Financial Services (OFS) takes a unique approach to resolving disputes. At the OFS, we love serving the people of Eswatini when there is a dispute between a consumer and a non-bank financial services provider (FSP) through a legal process called alternative dispute resolution (ADR).

What is Alternative Dispute Resolution (ADR)?

ADR can be defined as an “alternative to litigation that might be available to a lawyer and client to resolve a civil dispute,” (Blake et al. 2012) *. ADR is therefore a process where a legal dispute can be settled without having to go to court. At the OFS, ADR is a method used in the resolution of complaints against FSPs that are licensed by the Financial Services Regulatory Authority (FSRA). The methods used are conciliation, facilitation and mediation. When individuals, groups of people or businesses (complainants) want to lodge/make a complaint, we ask them to contact their FSP first and submit a written complaint, giving the FSP thirty (30) days to respond or resolve the complaint. If the complainant does not get a response or they are not satisfied with the response, they can then get a copy of our Complaint Form at our office, any CMAC branch, or from our website: www.ombudsfs.org.sz, to be completed, sworn to and submitted with all supporting documentation in person, by postal mail or email.

When a complaint against a licensed FSP is received by the Ombudsman, there are different stages that a complaint can go through. There are some instances when one of our officers will meet with the complainant and the FSP to facilitate or mediate a discussion between these two parties who not see eye-to-eye. All this is done in an effort to reach an agreement to resolve the complaint, guided by the law relating to the matter. For example, given that we receive complaints about savings and/or credit; retirement funds; insurance; investments; and medical aid schemes the laws that guide us are laws related to these categories of complaints. Should the parties still not agree on a settlement, the complaint is investigated further and the Ombudsman then issues a decision on the matter.

Why we love ADR and Ombudsman’s concept?

Accessible and Free

The way that we handle complaints at the Ombudsman is intended to make our services accessible. Accessibility is one of the reasons we love ADR. We believe that by making our processes less formal and easy to grasp, we provide an environment where both parties can talk about their grievances relating to non-bank financial services. In addition, because the Ombudsman is a public service entity, we also provide our service free of charge to the complainant. When people feel more confident about raising their complaints, it gives us an opportunity to assist in resolving matters. Therefore, as the Office of the Ombudsman of Financial Services, we are able to exercise our function of upholding good industry practice in Eswatini.

Independence

A fundamental characteristic that we love about ADR and one that is intrinsic for the Ombudsman is “Independence”. It ensures that the Ombudsman can act without influence from the entities regulated by the Financial Services Regulatory Authority (FSRA) or the FSRA itself. The FSRA Act, 2010, states that “the Authority may appoint an independent person, as Ombudsman”, which emphasises the importance of independence and how it better serves consumers in that the OFS receives complaints without taking sides and only considers what is fair and reasonable in each case.

Confidentiality

Another reason we love applying ADR in our processes is that we keep all matters confidential. The OFS respects and protects all information received, and it is treated with the privacy that it deserves. Our priority is to resolve financial services disputes without compromising the identity of the complainants and the FSPs or individuals complained against.

For All

Furthermore, we love to teach the public about it, specifically how it is applied in our processes at the Ombudsman. We educate on our purpose and services through community outreach, stakeholder presentations, and various media platforms. We are committed to educating consumers, financial services providers, consumer bodies and associations and the public on the role, procedures, and jurisdiction of the Office. In addition, we educate the public on the correct procedures for filing complaints and promote the principles of good business practice in handling complaints by the industry. One of the highlights of our work and what we love to do is to ensure that we reach people and empower them with the knowledge and resources they need to engage with our Office.

Love What You Do

We hope that as we approach February, you will be able to reflect on what you love to do and on the ways your work impacts others, so you are motivated to give it your very best in 2026! We also encourage all consumers to love and to thoroughly read and understand policies and contracts they have entered into with FSPs.