Minister Announces Reserve Dispute Resolution Scheme

Thursday, September 2, 2010

Minister of Consumer Affairs John Boscawen today announced that Financial Dispute Resolution, and the Banking Ombudsman Scheme, have been formally approved as financial service dispute resolution schemes under the Financial Service Providers (Registration and Dispute Resolution) Act.


“The Banking Ombudsman Scheme has operated for 18 years with professionalism and integrity.  It has played a significant role in providing redress for consumers – including investigating and resolving nearly 700 complaints about ING New Zealand’s frozen funds,” Mr Boscawen said.  ”


“Financial Dispute Resolution (FDR) is the operating name of the Government’s backstop, or reserve, scheme.  It will be operated by Dispute Resolution Services Limited (DRSL), an experienced provider of dispute resolution services. 


“These schemes – along with the Insurance & Savings Ombudsman Scheme and Financial Services Complaints Ltd (FSCL) – will provide independent dispute resolution services where complaints about financial products and services can be resolved.  They are free to consumers who have been unable to resolve complaints about the schemes’ members.


“Under the Financial Service Providers (Registration and Dispute Resolution) Act, financial service providers – banks, finance companies, insurance companies, financial advisers, credit unions, mortgage brokers and money lenders – must be registered by December 1, and must join a dispute resolution scheme before delivering services to retail clients.


“Consumers having access to dispute resolution, along with the registration of all financial service providers and the licensing of financial advisers, will promote confidence in the financial services sector,” Mr Boscawen said.