An independent report says that Canada’s banking regulator is not really an ombudsman but a “dispute resolution system.”

Former New Zealand banking ombudsman Deborah Battell has published the findings of her review of the Ombudsman for Banking Services and Investments and says it needs greater powers.

OBSI recently reported that prepayment penalties for mortgages are one of the most complained about issues among Canadian banks but it has limited powers to deal with any complaints that it receives.

Regulators say they will look at Battell’s recommendations that OBSI should be strengthened.

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