Choosing a Dispute Resolution Scheme (DRS)

The schemes you can join and who must join one

A DRS provides your customers with a process to manage any dispute that arises as a result of the financial services you provide. If you have to join a DRS, you must do that immediately and add your membership details to your registration within 10 working days of registering as a financial service provider (FSP).

What a DRS is and who can use one

A DRS deals with customer complaints or disputes with their FSP. All DRSs have rules about their complaints process, what you have to do and the kinds of complaints they deal with.

Only individual customers of an FSP or small organisations with 19 or fewer full-time equivalent employees can take a complaint to your DRS. It's free for them to do this, but they must take their complaint to you first.

Financial Service Providers (Registration and Dispute Resolution) Act 2008 — Section 48 New Zealand Legislation

Who must belong to a DRS

Most financial service providers who provide a service to retail clients must belong to an approved DRS. A retail client is anyone who is not a wholesale client under the Financial Service Providers (Registration and Dispute Resolution) Act 2008.

Financial Service Providers (Registration and Dispute Resolution) Act 2008 — Section 49 New Zealand Legislation

Some financial service providers are covered by their employer’s scheme. If you change employers check that your DRS membership details are up to date on the Financial Service Providers Register (FSPR).

Keeping DRS details up to date

When the Registrar deregisters an FSP

Who doesn't need to belong to a DRS

You don't need to join a DRS if you:

  • only provide advice on behalf of a business that's already a member of a DRS
  • only provide services to wholesale clients, such as other businesses, professional investors, large companies, related companies and Crown agencies
  • issue or promote securities to the public from time to time, but it's not your principal business
  • only offer a financial service, other than the provision of credit, which offers a low-value cash payment facility to users with a maximum cap of $1,000 for individuals or $15,000 for others.

Securities Act 1978 — Section 3 (2) New Zealand Legislation

Approved dispute resolution schemes

There are 4 schemes approved by Consumer Protection to provide financial dispute resolution services. They are:

Banking Ombudsman (BOS)

Phone 0800 805 950

Person responsible for scheme: Nicola Sladden (Banking Ombudsman)

Level 5, Huddart Parker Building
1 Post Office Square
Wellington

Insurance and Financial Services Ombudsman (IFSO)

Phone 0800 888 202

Person responsible for scheme: Karen Stevens (Insurance & Financial Services Ombudsman)

70 The Terrace
Wellington
New Zealand

Financial Services Complaints Ltd (FSCL)

Phone 0800 347 257

Person responsible for scheme: Susan Taylor (Chief Executive Officer)

Level 4, Legal House
101 Lambton Quay
Wellington

Financial Dispute Resolution (FDR)

Phone 0508 337 337

Person responsible for scheme: Liz Hogan (Head of Commercial Services)

FairWay Resolution Limited
Level 15, Chorus House
66 Wyndham Street
Auckland 1010

Banking Ombudsman — Scheme documents

Insurance and Financial Services Ombudsman — Join the IFSO scheme

Financial Services Complaints Ltd — Application forms

Financial Dispute Resolution — Become a scheme member

You'll be invoiced by the DRS you join for the fees they charge.

Financial dispute resolution schemes Consumer Protection

All help topics

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Registering a financial service provider (FSP) 11 guides

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Dispute Resolution Schemes (DRSs) 2 guides

If you provide financial services to retail clients, you must join a DRS within 10 working days of registering and keep your membership details up to date on the Financial Service Providers Register (FSPR).

Paying fees and levies 2 guides

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Applying to provide licensed services 6 guides

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Filing an annual confirmation 3 guides

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Managing your registration as a financial service provider (FSP) 6 guides

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Managing your online services account 7 guides

Your FSPR online services account allows you to keep your FSP's contact and payment details up to date. From your account dashboard you can view and manage outstanding applications and tasks.