Discussion Paper
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1. Seeking Your Views
1. The Financial Service Providers (Registration and Dispute Resolution) Act 2008 requires financial service providers (FSPs) to be registered. In order for FSPs to be registered they are required to be members of a dispute resolution scheme if they provide financial services to the public. The dispute resolution scheme may be either an approved dispute resolution scheme or the reserve scheme.
2. The purpose of this consultation paper is to propose and seek feedback on:
- the operating rules of the reserve scheme;
- the organisational form and governance arrangements of the reserve scheme; and
- the process to establish the reserve scheme.
3. Section 72 of the Financial Service Providers (Registration and Dispute Resolution) Act provides that the Governor General may, on the recommendation of the Minister of Consumer Affairs, prescribe rules about the functions of the reserve scheme. The Minister may only make a recommendation to the Governor General after consultation with the Ministers of Finance and Commerce and any persons or their representatives the Minister considers are likely to be substantially affected by the recommendation. Those who are likely to be affected include financial service providers who may want to consider joining the reserve scheme, and consumers who may be using the services of a financial provider who joins the reserve scheme. Feedback from consumer and industry organisations that have a general interest in the effective operations of the financial services sector is also welcome.
Making a submission
4. The Ministry of Consumer Affairs invites submissions on the proposals for the operation and governance of the reserve scheme outlined in this discussion paper.
5. Please note that a separate consultation paper outlines proposals in regard to the approval criteria and process for consumer dispute resolution schemes in the financial sector.
6. Parties who wish to make a submission are invited to respond by Friday 31 July 2009. Please contact the Ministry of Consumer Affairs (fsp.schemes@mca.govt.nz) if you are experiencing difficulties meeting this deadline.
7. Submissions are to be emailed in either Adobe PDF or Microsoft Word format to the Ministry of Consumer Affairs (fsp.schemes@mca.govt.nz), with "Submission on the Financial Service Providers Act 2008 Reserve Scheme" as a subject heading. Alternately, submitters may send hard copies of their submission to:
Anne Yau
Ministry of Consumer Affairs Fax 64 4 470 2533
PO Box 1473, Wellington
8. Submitters should indicate any documents attached in support of their submission in a covering letter. The Ministry of Consumer Affairs will acknowledge receipt of all submissions electronically. Please contact Anne Yau at fsp.schemes@mca.govt.nz or phone 64 4 474 2650 if you do not receive electronic acknowledgement of your submission within five business days.
OFFICIAL INFORMATION ACT 1982
Please note that any submissions you make may be published and subject to a request for release under the Official Information Act 1982.
In providing your submission, please advise us if you have any objections to the release of all or part of your submission and the basis of your objection. When preparing and releasing any summary of submissions and when considering any Official Information Act requests, the Ministry will carefully review any representations you make in this regard.
Privacy Act 1993
Any personal information that you supply to the Ministry in the course of making a submission will be used only by the Ministry when considering matters covered by this discussion paper.
When preparing any summary of submissions on Ministry discussion papers, it is the Ministry's normal practice to set out the names of parties making submissions. Your name will be included in any such summary unless you inform the Ministry that you do not wish your name to be included. To indicate your wishes, or to view personal information held about you in relation to matters covered by this discussion paper, or to request correction of that information, please contact the Ministry of Consumer Affairs (fsp.schemes@mca.govt.nz).
Consideration of Submissions
9. The Ministry of Consumer Affairs will consider all submissions and, then taking these into account, will make recommendations to the Minister of Consumer Affairs on the final rules for the operation and governance of the reserve scheme. Following consultation with the Ministers of Finance and Commerce, the Minister of Consumer Affairs will then make a recommendation to the Governor General on the rules of the reserve scheme. The rules will then be made available on the Ministry of Consumer Affairs website and the process to select an agent to operate the reserve scheme will commence.
Summary indicative timeline
10. An indicative implementation timetable for the reserve scheme is given below (see Chapter 6 for full details of the establishment process and timeline).
| Indicative Timeline for Establishment of Reserve Scheme |
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| Deadline for submissions |
31 July 2009 |
| Governance arrangements and operating rules of reserve scheme finalised |
30 September 2009 |
| Advisory body and reserve scheme service provider appointed |
December 2009 |
| Consultation on levies for reserve scheme |
December- February 2010 |
| Reserve Scheme established |
May 2010 |
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