The terms of reference for the independent review into the financial system's external dispute resolution and complaints system were released yesterday by the Minister for Revenue and Financial Services, Kelly O'Dwyer. The review will examine the processes being followed by these three dispute resolution bodies: the Financial Ombudsman Service, the Superannuation Complaints Tribunal, and the Credit and Investments Ombudsman.Chaired by Professor Ian Ramsay, with Alan Kirkland and Julie Abramson as members, the panel will deliver its final report to the Minister for Revenue and Financial Services by the end of March 2017.When announcing the terms of reference, O'Dwyer said the original reporting date had been pushed back by three months at the request of the panel members "to allow for in-depth consultation with stakeholders, industry, the dispute resolution and complaints schemes, peak bodies, and regional and consumer representatives." The panel is tasked to "... take into account best practice developments in dispute resolution arrangements in overseas jurisdictions and other sectors," based on these factors: "efficiency; equity; complexity; transparency; accountability; comparability of outcomes; and regulatory costs."Among the areas under specific scrutiny, in consultation with ASIC, will be the concurrent review of the Financial Ombudsman Service's small business jurisdiction.Another area of concern to FOS is the limitation on the panel, in that while it "may make observations" on a compensation scheme of last resort, the terms of reference do not allow for any recommendations to be made. And so, while generally supportive of the review, FOS highlighted this omission as leaving "an important gap in [Australia's] current regulatory framework". "FOS has been a longstanding advocate of a compensation scheme over many years. It is essential for the effective operation of external dispute resolution that consumers who get an award of compensation by FOS can be confident that this compensation will be paid," said Shane Tregillis, chief ombudsman for FOS.