Minister's Release: Finance service provider register aids consumer redress


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14 December 2007

News release

Hon Lianne Dalziel, Minister of Commerce

Finance service provider register aids consumer redress

Financial service providers will have to be registered and have an approved scheme for dealing with customer complaints under a Bill which had its first reading in Parliament last night, Commerce Minister Lianne Dalziel says.

Lianne Dalziel said the Financial Service Providers (Registration and Dispute Resolution) Bill is part of the government's ongoing work to build an effective and sound regulatory environment that will boost confidence in New Zealand's financial sector.

"An important feature of the Bill is that it will provide consumers with a simple, low-cost avenue for redress when they have a complaint," Lianne Dalziel said.

"Financial service providers who transact with consumers will have to belong to an approved dispute resolution scheme. 'Consumers', in this context, include SMEs which I think is a considerable advance in consumer protection because it recognises that small businesses can be as vulnerable as natural persons."

Lianne Dalziel said existing voluntary industry-based dispute resolution schemes, such as the Banking Ombudsman and the Insurance and Savings Ombudsman, already provide effective access to redress for consumers.

"The Bill will not see these schemes replaced. In fact, some of the existing schemes may expand their coverage; others will model themselves on them."

The registration system will:

identify financial service providers;
allow more effective monitoring and evaluation of the financial system;
provide consumers with easy access to information about financial service providers;
assist in meeting New Zealand's anti-money laundering obligations under the Financial Action Task Force (FATF) Recommendations;
ensure that the controlling owners, directors and senior management of entities providing financial services do not have certain criminal convictions, are not bankrupt, and are not the subject of a director/management ban under companies or securities or consumer legislation.

Contact: Elspeth McIntyre, Press Secretary, ph 04 471 9397 cell 021 227 9397

All Lianne Dalziel's media statements and speeches are at www.beehive.govt.nz/dalziel

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