Implementation and Review
The proposal will be implemented with commencement in two stages. Stage 1, which establishes the rules for approval of dispute resolution schemes, will commence immediately following enactment of the legislation (and any regulations, if necessary). Stage 2, which will be the mandatory requirement for financial institutions to join an approved dispute resolution scheme, will come into force at the same time as the requirement to register in 2012.
To assist affected parties in complying with the new regime, the Ministry of Economic Development will produce educational material for dispute resolution schemes to help them meet their obligations in order to obtain approval; for financial institutions, to inform them of their obligation to join a dispute resolution scheme; for consumers, to inform them of the availability of new dispute resolution and redress mechanisms.
Compliance by firms with the requirement to join a dispute resolution scheme will be enforced by the proposed Registrar of Financial Service Providers through the registration regime (as outlined in the accompanying paper "Review of Financial Products and Providers: Registration of Financial Service Providers").
The effectiveness of the new dispute resolution regime in achieving its objectives will be monitored through the annual reports which approved dispute resolution schemes are required to submit to the Minister.
There is a risk that no dispute resolution schemes will seek or obtain approval, however this has been managed by consultation with industry and potential schemes. The level of support for industry-based dispute resolution shown through consultation on the discussion paper indicates that industry is committed to successfully implementing the proposal.
Back to Top