Banking Ombudsman chair Ron Paterson says gaining Ministerial approval as a dispute resolution scheme under the new Financial Services Providers (Registration and Dispute Resolution) Act is an important step for the scheme and enables it to offer its services to a wider range of participants.

Under the legislation, all financial service providers are required to belong to an approved dispute resolution scheme by the end of this year. 

In order to be approved, a scheme needs to meet certain criteria including accessibility, independence, fairness, accountability, efficiency, and effectiveness.

Professor Paterson says the Banking Ombudsman Scheme, having been established in 1992, has the advantages of knowing its industry and having a solid reputation.

"We want to build on our existing strengths and trusted leadership position to be New Zealand's premier dispute resolution scheme."

The expanded Scheme will cater for all banks and their subsidiaries, as well as non-bank deposit takers that:

• are regulated by the Reserve Bank
• have minimum credit ratings of BB
• have high quality internal complaints resolution standards and processes.

Paterson says as the experts in investigating and resolving disputes in the banking industry, it makes sense for the scheme to offer its expertise to high quality non-bank deposit takers as these companies essentially provide bank-like services.

"By focusing on our core business, we will continue to lift standards in dispute resolution processes, improve the banking experience, and maintain consumer confidence in the banking system," he says.