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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

49A: Who are eligible investors

You could also call this:

“People who want fewer protections when getting money help”

To be considered an eligible investor, you need to do a few things. First, you must write a statement saying you understand that if you become an eligible investor, the person or company providing you with financial services might not be part of an approved dispute resolution scheme. This means you might not have the same protection as other customers if something goes wrong.

You also need to explain why you want to be an eligible investor. Then, the financial service provider must sign a paper accepting your decision to be an eligible investor.

You can choose to be an eligible investor for just one type of financial service, a few types, or all types. However, this only applies to services you receive after you’ve completed all these steps.

Remember, being an eligible investor means you might have less protection, so it’s important to think carefully before making this decision.

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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=DLM3080331.

Topics:
Money and consumer rights > Banking and loans Money and consumer rights > Consumer protection Business > Fair trading
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49: Who are retail clients, or

"People who need extra protection when using financial services"

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49B: Acceptance of certification, or

"When someone says they're a big business customer, you need to check they really understand what that means"

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

49AWho are eligible investors

  1. A client is an eligible investor if—

  2. the client certifies in writing that the client understands that, as a consequence of certifying himself, herself, or itself to be an eligible investor, the financial service provider may not be a member of an approved dispute resolution scheme; and
    1. the client states the reasons for this certification; and
      1. a financial service provider signs a written acceptance of the certification in accordance with section 49B.

        1. A certification may be specific to a particular service or class of services or may be general (but is effective only in relation to services provided after all of the requirements of subsection (1)(a) to (c) are met).

        Notes
        • Section 49A: inserted, on , by section 27 of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2010 (2010 No 41).