Complaints rules edge closer

Evelyn Cole, Ministry of Consumer Affairs (MCA) head of consumer policy, told Good Returns that the two papers outlining proposals for the establishment of a reserve disputes resolution scheme and guidance for other scheme providers were close to reaching Cabinet for approval.

"Ideally [the proposals] would be before the Cabinent committee next week," Cole said, with June 8 the earliest date Cabinet could sign off on the proposals.

Financial advisers will be obliged to belong to an approved dispute resolutions scheme once regulations governing the industry come into force next year. The Financial Services Providers Act, passed last September along with the Financial Advisers Act, included provisions for establishing dispute resolution schemes.

While the law allows for interested parties to form their own dispute resolution schemes - subject to government approval - it also calls for the creation of a reserve scheme to handle all consumer complaints not covered by other providers.