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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Dispute resolution - Approval of dispute resolution schemes - Withdrawal of approval

56: Withdrawal of approval

You could also call this:

“The government can stop a dispute resolution scheme if it doesn't follow the rules”

The Minister can take away approval from a dispute resolution scheme after giving notice. This can happen for many reasons. For example, if the scheme breaks any rules, doesn’t follow its own rules, or if the rules don’t meet the right standards. The Minister can also do this if the person in charge of the scheme doesn’t keep a list of members, doesn’t share the rules publicly, or doesn’t give the Minister important reports and information.

When thinking about taking away approval, the Minister must consider certain things. These are the same things they look at when first approving a scheme.

If the person running the scheme asks the Minister to take away approval, the Minister must do it. But the person asking must give at least 3 months’ notice, or less if the Minister agrees. They also need to have a plan for moving their members to other approved schemes.

The “notice period” mentioned in this law means 20 working days from when the Minister tells the scheme about possibly taking away approval.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1109568.

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"The Government tells a complaint-handling group they might lose their approval"

Part 3 Dispute resolution
Approval of dispute resolution schemes: Withdrawal of approval

56Withdrawal of approval

  1. The Minister may withdraw the approval of an approved dispute resolution scheme after a notice period in accordance with sections 57 and 58 for any or all of the following reasons:

  2. there has been a breach of a prescribed requirement:
    1. there has been a failure to comply with the rules about the scheme:
      1. the rules about the scheme do not, or no longer, comply with the requirements of section 63:
        1. the person responsible for the scheme has not maintained or published a list of current members as required by section 62:
          1. the person responsible for the scheme has not published the rules as required by section 64:
            1. the person responsible for the scheme has not supplied the Minister with any of the following:
              1. an annual report as required by section 68:
                1. any further information requested by the Minister under section 69:
                  1. an independent review as required by the rule described in section 63(1)(q):
                  2. the person responsible for the scheme has not notified the Minister in accordance with section 65 before changing the rules about the scheme:
                    1. the person responsible for the scheme has not complied with section 67:
                      1. the scheme no longer satisfies the principles in section 52(2).

                        1. When considering whether to withdraw an approval, the Minister must have regard to the considerations referred to in section 52(1)(a) to (g) in light of the principles listed in section 52(2).

                        2. The Minister must withdraw the approval of an approved dispute resolution scheme if the person responsible for the scheme so requests, with effect from any future date requested.

                        3. However, despite subsection (3), the Minister is not required to withdraw approval unless the person responsible for the scheme has, at the time of the request,—

                        4. given the Minister—
                          1. 3 months' notice of the date on which the proposed withdrawal of approval is to take place; or
                            1. any lesser notice period agreed to by the Minister; and
                            2. informed the Minister of adequate arrangements that it has made, or will make, to facilitate the transfer of members of the existing scheme to another approved dispute resolution scheme or schemes.

                              1. For the purposes of this section and sections 57 and 58, notice period means 20 working days from the date of the Minister’s notification under section 57(1).

                              Notes
                              • Section 56(1)(ba): inserted, on , by section 33(1) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                              • Section 56(1)(e)(iii): amended, on , by section 33(2) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
                              • Section 56(3A): inserted, on , by section 33(3) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).