First Financial Service Disputes Resolution Schemes Approved

Minister of Consumer Affairs Heather Roy today announced that Financial Services Complaints Limited (FSCL) and the Insurance & Savings Ombudsman (ISO) are the first financial sector consumer dispute resolution schemes that she has approved under the Financial Service Providers (Registration and Dispute Resolution) Act 2008.

"The best delivery of consumer dispute resolution occurs when industry is committed to supporting a robust and independent dispute resolution process. Consumers having access to redress and dispute resolution will promote confidence in the financial services sector, and I am pleased to approve both FSCL’s and the ISO applications," Mrs Roy said.

"The FSCL and ISO schemes will provide independent dispute resolution services to both consumers and the finance industry where complaints can be resolved. Both complaints processes will be free to consumers wishing to complain about a member of either scheme, and the costs of the schemes will be met by their members.

"Under the Act, financial service providers delivering services to the public - including banks, finance companies, insurance companies and financial advisers, credit unions, mortgage brokers and all money lenders - must be members of a consumer dispute resolution scheme in order to be registered as a Financial Services Provider. They have the option of joining either an approved dispute resolution scheme or the reserve scheme.

"The Financial Service Providers Register is scheduled to go live in July 2010 and will be maintained by the New Zealand Companies Office. I will announce the provider of the Government reserve scheme soon," Mrs Roy said.

For more information on the FSCL scheme, visit www.fscl.org.nz. Information about the ISO scheme is available at www.iombudsman.org.nz

ENDS