Hon Lianne Dalziel
Minister of Commerce
Hon Judith Tizard
Minister of Consumer Affairs
25 September 2008 Media Statement
Finance sector consumer complainants get redress
Consumers who have been unable to resolve a complaint with their financial adviser or service provider will have access
to an independent and free dispute resolution service under a Bill passed in Parliament today.
Commerce Minister Lianne Dalziel and Consumer Affairs Minister Judith Tizard welcomed the passage of the Financial
Service Provider (Registration and Dispute Resolution) Bill which is part of a suite of reforms of the finance industry.
Judith Tizard said the bill created a co-regulatory model, under which industry groups will develop their own schemes
which will then have to be approved by the Minister of Consumer Affairs.
"The criteria that all approved schemes must meet are the internationally accepted benchmarks of accessibility,
independence, fairness, accountability, efficiency and effectiveness," Judith Tizard said.
There will also be a reserve scheme established for providers who do not belong to an approved industry dispute
resolution scheme.
"Only service providers who offer a service to the public will be required to join a dispute resolution scheme – so this
exempts family trusts, for example – and the dispute resolution services must be available to consumers and small
businesses and organisations. Furthermore, we are making them accessible and equitable by not permitting such services
to charge a fee to any complainant," Judith Tizard said.
Lianne Dalziel said all financial providers must be registered and belong to a dispute resolution unless they are
providing advice incidental to their professional service (eg. as a lawyer, accountant, tax agent or real estate agent)
and are regulated in law by their own professional standards. It also exempts not-for-profit organisations who provide
free financial services, such as community budget advisers.
"The register, which will be managed by the Companies Office, will provide a useful resource for consumers, industry and
regulators by providing a searchable access point for information on financial providers. This will also assist New
Zealand to fulfil our international obligations under rules curbing money laundering or the financing of terrorism,"
Lianne Dalziel said.
ENDS