Does financial services industry need four disputes schemes?
The issues paper asks whether having four approved schemes is the right thing for consumers.
“New Zealand’s dispute resolution regime is unusual in that it has a number of different schemes effectively competing for financial service providers as members. As part of the review we will be considering the impact of this competitive dynamic,” the paper says.
It said feedback from the industry had indicated that competition could be constraining the activities of some schemes, although it had no indication that competitive tensions were influencing schemes’ judgement or independence.
“Aside from competition between the schemes themselves, the existence of overlapping schemes with differing rules and jurisdiction has some potential negative effects. Consumers may lose confidence in dispute resolution if it becomes apparent that a complaint would have a different outcome depending on which scheme the provider belongs to. While the current differences between approved dispute resolution schemes are relatively small, we would be interested in whether stakeholders think that differences in scheme rules are causing any issues at present.”
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[Weekly Wrap] Research shows KiwiSaver is a key issue in the election; GRTV Special looks at what's on offer.](https://goodreturns.publit.io/file/c_fill,w_300,h_200/36b7de93-7b53-4a06-855a-4a8f4009a280.webp)
