Do you think there should be a single dispute resolution scheme to hear all retail advice complaints?
- Yes (61%)
- No (39%)
- Not sure (0%)
Loading ...While MBIE mulls over the responses to its public consultation exercise of the country’s dispute resolution schemes (DSR) amid concerns the public might be confused or disadvantaged, the obvious questions is – are four DSR schemes too many for such a small country?
A review of the schemes by MBIE found consumers could lose access to a DSR if a financial adviser or service provider switches from one scheme to another. In addition, each scheme has its own rules and financial caps for compensating consumers.
It also appears that since 15 March, and the start of the new regulatory regime, advisers are no longer directly a member of any scheme – as they now fall under their FAP’s membership.
It means, says Katrina Shanks of Financial Advice NZ, that no scheme has jurisdiction for a claim raised about an adviser prior to March 15, 2021.
Is it time then to streamline DSRs into one scheme with a single set of rules and compensation limits?
See our story: Lots to be Done to Update Dispute Resolution Schemes.