Consumer Dispute Resolution and Redress
[ Last Updated 19 June 2007 ]
A comprehensive, industry-based consumer dispute resolution system, with multiple schemes will be established. It is intended to operate as a complement to the courts. Consumers will still retain their right to take court action if they wish.
Membership of an approved dispute resolution scheme will be mandatory for registered financial service providers and financial advisers who transact with consumers.
It is not necessary for all financial service providers to belong to an approved dispute resolution scheme, but only those financial service providers that transact with "consumers".
Categories of entities which will be required to be registered financial service providers include:
- banks;
- friendly societies;
- credit unions;
- building societies;
- industrial and provident societies;
- finance companies;
- issuers of equity and debt securities;
- issuers of collective investment schemes;
- trustees supervising these issuers;
- insurers;
- platform and portfolio service providers and custodians.
- lending businesses;
- financial leasing businesses;
- money or value transfer services (eg money remittance);
- money and currency changers;
- financial advisers
Approval of dispute resolution schemes will be by the Minister of Commerce in consultation with the Minister of Consumer Affairs and Minister of Finance.
Approved schemes will provide dispute resolution to consumers in accordance with the scheme’s rules and coverage.
Government involvement will be limited to approving schemes (including periodic renewal), receiving periodic reports, and powers of inspection if necessary.
Cabinet Papers
Consumer Dispute Resolution and Redress
Frequently Asked Questions
Consumer Dispute Resolution and Redress Q&A
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