Dispute Resolution Schemes are government approved organisations which act as mediators between Financial Services Providers and their customers in cases of disputes.
According to Part 3 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008, the purpose of Dispute Resolution Schemes “…is to promote confidence in financial service providers by improving consumers’ access to redress from providers through schemes to resolve disputes,” and “…the schemes are intended to be accessible, independent, fair, accountable, efficient, and effective.”
Every entity which intends to provide financial services to retail clients must first be a member of an approved Dispute Resolution Scheme before applying to be registered as a New Zealand Financial Service Provider
Currently there are four Dispute Resolution Schemes approved by the government:
- Financial Services Complaints Limited
The Financial Services Complaints Limited is aimed at providing dispute resolution and mediation services for FSPs offering advisory services, transactional services, insurance services, and investment fund managers and brokers
- The Insurance & Savings Ombudsmen
The Insurance & Savings Ombudsmen is specifically aimed at FSPs providing retail insurance services.
- The Financial Dispute Resolution Scheme
The Financial Dispute Resolution Scheme is open to all FSPs providing financial services and products.
- The Banking Ombudsman
The Banking Ombudsmen offers mediation service to retail clients and their banks.
Each scheme is aimed at different types FSPs, based on their proposed services and intended products, and careful consideration is needed to ensure that the proposed Financial Service Provider joins the appropriate Scheme.
To order your New Zealand Financial Service Provider registration and request assistance to pick and join an appropriate DRS contact out consultants on +64 7 8080 444, or email us on info@businesscompass.co.nz, or fill out our online consultation form.
