Appendix one: Key Sections of the Financial Service Providers (Registration and Dispute Resolution) Act 2008

Section 52: Mandatory considerations for approval

1. When considering an application under section 51, the Minister must have regard to the following considerations in light of the principles listed in subsection (2):
   1. whether the scheme has an appropriate purpose:
   2. whether the applicant has undertaken reasonable consultation on the scheme with members or potential members of the scheme, and persons (or their representatives) likely to be substantially affected by the scheme:
   3. whether the applicant has adequate funding to enable it to operate the scheme according to the scheme's purpose and in accordance with the rules about the scheme:
   4. whether the applicant's directors and senior managers are competent to manage a dispute resolution scheme:
   5. whether the scheme is capable of resolving disputes about the types of financial services provided by the members or potential members of the scheme:
   6. the amounts of money that complaints lodged with the scheme may be about, and whether those amounts are reasonable and appropriate:
   7. whether the rules about the scheme are adequate and comply with—
      1. the principles listed in subsection (2); and
      2. the requirements of section 63:
   8. the number of currently approved dispute resolution schemes:
      1. the types of financial service providers that may be members of currently approved dispute resolution schemes:
   9. the proposed size of the scheme:
   10. the types of financial service providers that may be potential members of the scheme:
   11. any other applications for approval that have been made.
2. The principles are—
   1. accessibility:
   2. independence:
   3. fairness:
   4. accountability:
   5. efficiency:
   6. effectiveness.

Section 63: Rules about approved dispute resolution scheme

The person responsible for an approved dispute resolution scheme must issue rules about that scheme, and those rules must provide for, or set out, the following:

1. which types of financial service providers may be members of the scheme (all providers of that type must be eligible):
2. how financial service providers become members of the scheme and how membership is terminated:
3. that consumers and businesses that have no more than 19 full-time equivalent employees may make complaints for resolution by the scheme:
4. how complaints about a member may be made for resolution by the scheme:
5. a period after which the scheme, if asked by a complainant, must investigate a complaint that has been made directly to a member:
6. that complaints about members must be investigated in a way that is consistent with the rules of natural justice:
7. that complaints about members may be made relating to any of the following things:
   1. breaches of contract by the member:
   2. breaches of statutory obligations by the member:
   3. breaches of industry codes by the member:
   4. any other matters provided for in the rules:
8. that any information may be considered in relation to a complaint and any inquiry made that is fair and reasonable in the circumstances:
9. the remedial action that the scheme can impose on a member to resolve a complaint (for example, a requirement to change systems or to compensate a complainant up to a certain amount stated in the rules):
10. how remedial action may be enforced against the scheme's members, including after members have left the scheme:
11. that a financial service provider who has not taken remedial action imposed on that provider by another approved dispute resolution scheme or the reserve scheme cannot join the scheme:
12. that the scheme will not charge a fee to any complainant to investigate or resolve a complaint:
13. that a resolution of a complaint about a member of the scheme is binding on the member concerned:
14. that a resolution of a complaint about a member of the scheme is binding on the complainant concerned, if the complainant accepts the resolution:
15. that the complainant may take alternative court action against the member at any time, including if the complainant rejects the resolution:
16. that the scheme may cease investigating and resolving a complaint if the complainant takes alternative court action against the member:
17. that an independent review of the scheme must occur at least once every 5 years after the date of the scheme's approval and must be supplied to the Minister within 3 months of completion:
18. that the person responsible for the scheme and the scheme's members must inform the people referred to in paragraph (c) about the scheme.