A call for stakeholder input by the Ombudsman for Banking Services and Investments (OBSI) on its approach to calculating investor losses from unsuitable sales of illiquid exempt market securities has led to five new commitments from the complaint-handling organization.
“OBSI will be taking a number of steps to improve our methodology, as well as our transparency and communications relating to our loss calculations,” the organization announced last week.
First, OBSI has committed to review and update its public information and disclosures related to how it calculates all investor losses.
Second, it will publish a document describing its approach to selecting benchmarks and comparative investments used in loss calculations.
Third, OBSI will publish an updated methodology document “to provide more complex and detailed information for stakeholders.”
Fourth, it will publish technical case studies designed to add greater detail to the simplified case studies already available.
Fifth, OBSI has promised to monitor new investment products and services and to “continuously” update its methodology as required.
OBSI’s next independent external review is scheduled for next year. Loss-calculation methodologies will be included, it said.