First Financial Services Disputes Resolution Scheme Application

Financial Services Complaints Limited (FSCL) has become the first body to apply to set up a financial sector consumer disputes resolution scheme under the Financial Service Providers (Registration and Dispute Resolution) Act 2008, Minister of Consumer Affairs Heather Roy said today.

"Consumers need access to good dispute resolution. I am pleased to receive this application from a recently established scheme that is open to all participants in the financial sector," Mrs Roy said.

"By the end of 2010 financial service providers - banks, finance companies, insurance companies, financial advisers, credit unions, mortgage brokers, money lenders, etc - will have to be registered and must join a dispute resolution scheme. They can join an industry-run dispute resolution scheme approved by the Minister of Consumer Affairs, or sign up to the Government reserve scheme.

"Applications to become an approved scheme will be reviewed by the Ministry of Consumer Affairs. I expect to make a recommendation in the New Year to decide upon Financial Services Complaints Limited's application.

"I want to encourage others to follow the lead of FSCL and establish dispute resolution schemes and apply to have them approved," Mrs Roy said.

Guidelines to assist in establishing an approved financial sector consumer disputes resolution scheme can be found at http://www.consumeraffairs.govt.nz/businessinfo/dr/index.html.