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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Dispute resolution - Financial service provider must be member of dispute resolution scheme

48: Financial service provider must be member of dispute resolution scheme

You could also call this:

“Financial service providers need to join a special group that handles customer complaints”

When you provide financial services to regular people (retail clients), you must be part of an approved dispute resolution scheme. This means that if someone has a complaint about your financial service, they can take it to this scheme.

You are considered a member of a dispute resolution scheme if the scheme can look into complaints about you.

There are some exceptions to this rule. You don’t have to be part of a dispute resolution scheme if:

  1. Your main business isn’t providing certain financial services.
  2. You run a financial product market.
  3. You’re an individual who has been given special permission not to join.
  4. You’ve been excused from joining by another law or by special rules.

If none of these exceptions apply to you, and you provide financial services to regular people, you must join an approved dispute resolution scheme.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1585427.

Topics:
Money and consumer rights > Consumer protection Money and consumer rights > Banking and loans Business > Industry rules
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47: Purpose of this Part, or

"This part explains how to get help if you have problems with money companies"

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48A: When financial adviser is exempt from being member, or

"When a financial adviser doesn't need to join a complaint-handling group"

Part 3 Dispute resolution
Financial service provider must be member of dispute resolution scheme

48Financial service provider must be member of dispute resolution scheme

  1. Every financial service provider must be a member of an approved dispute resolution scheme in respect of a financial service provided to a retail client.

  2. A member, in relation to an approved dispute resolution scheme, is a financial service provider who may be the subject of a complaint to that scheme.

  3. However, this obligation does not apply to—

  4. a financial service provider in relation to providing a financial service referred to in section 5(1)(i) or (ia)(i) if providing that service is not the provider's only or principal business; or
    1. a financial service provider in relation to the financial service of operating a financial product market (within the meaning of section 6(1) of the Financial Markets Conduct Act 2013); or
      1. an individual who is exempted from the obligation by section 48A; or
        1. a financial service provider (whether generally or in respect of a particular financial service or class of financial service) if it is exempted from the obligation by or under any other Act or by regulations made under section 79.

          Notes
          • Section 48(1): amended, on , by section 28(1) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
          • Section 48(1): amended, on , by section 26(1) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2010 (2010 No 41).
          • Section 48(2): amended, on , by section 28(2) of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
          • Section 48(3): replaced, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
          • Section 48(3)(ba): inserted, on , by section 90 of the Financial Services Legislation Amendment Act 2019 (2019 No 8).