Dispute Resolution Changes on The Table


The Government is looking to reform the regulatory landscape for financial services, and is inviting industry feedback on its proposals.

Among the proposed changes include setting a higher financial lump sum compensation limit of $500,000 for all dispute resolution schemes (this is currently $350,000 or $200,000 for some schemes).

In addition, a consistent weekly compensation limit of $2,600 is being proposed for complaints related to regular payment products (currently only two of the schemes have a weekly limit).

Other proposals include providing consistent financial awards for non-financial harm and inconvenience suffered by a complainant throughout the complaints process, and setting consistent timeframes for consumers to bring a complaint to a scheme.

MBIE is inviting submissions on a package of discussion documents…

Simplifying regulations, removing undue compliance, and improving outcomes for consumers are also on the table. In addition, MBIE is looking to transfer regulatory responsibility for the CCCFA from the Commerce Commission to the FMA.

“MBIE is inviting submissions on a package of discussion documents that aim to improve how financial services are provided to New Zealanders, and how disputes are resolved,” says Andrew Hume, the organisation’s General Manager Small Business, Commerce and Consumer Policy branch.

A spokesperson for dispute resolution service FSCL says it is reviewing MBIE’s documents and supports increased accessibility to dispute resolution schemes.

Financial dispute resolution discussion papers are listed here. Submission date for responses closes 5pm, Wednesday 19 June 2024.