1 July 2014

Financial service provider regime improved

Commerce and Consumer Affairs Minister Craig Foss today welcomed a range of new measures to strengthen the financial service provider registration and dispute resolution regime.

“We have made improvements to the financial service provider registration rules and introduced new powers to allow the Financial Markets Authority (FMA) to block the registration of financial service providers if needed,” Mr Foss says.

“The registration changes will help prevent misuse of the register by dodgy individuals trying to exploit New Zealand’s good name.

“Dispute resolution schemes already play an important role in resolving complaints against financial service providers, at no cost to the consumer. These changes will ensure a wider range of complaints can be considered by dispute resolution schemes, including matters relating to the upcoming credit reforms.

“The schemes can now also share information about systematic breaches of credit law with the Commerce Commission.”

Changes coming into force today include:

• Providing the FMA with the ability to block the registration of a financial service provider if that registration would create a misleading impression of its services.

• Disqualifying from registration anyone with overseas criminal convictions for theft, fraud or money laundering in last five years.

• Disestablishing the reserve dispute resolution scheme - it is no longer required as there are a range of other schemes covering all types of financial service providers.

• Ensuring the dispute resolution schemes have sufficient jurisdiction over disputes relating to the upcoming credit reforms.

For more information on financial dispute resolution schemes, visithttp://www.consumeraffairs.govt.nz/for-consumers/how-to-complain/financial-service-providers-disputes-resolution/financial-service-providers-disputes-resolution

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