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Financial Service Providers (Registration and Dispute Resolution) Act 2008

Dispute resolution - Approval of dispute resolution schemes - Approval of dispute resolution schemes

52: Mandatory considerations for approval

You could also call this:

“Things the Minister must think about before saying yes to a new way of solving money problems”

When the Minister is deciding whether to approve a dispute resolution scheme, they need to think about many things. These things are based on important principles like accessibility, independence, fairness, accountability, efficiency, and effectiveness.

The Minister needs to look at whether the scheme has a good purpose and if the people running it have talked to others who might use it or be affected by it. They also need to check if there’s enough money to run the scheme properly.

The Minister will also consider if the people in charge are good at managing this kind of scheme and if it can handle disputes about different types of financial services. They’ll look at what kinds of complaints the scheme can deal with and if the rules for the scheme are good enough.

The Minister will think about how many other approved schemes there are already, what types of financial service providers they cover, and how big the new scheme might be. They’ll also look at what types of financial service providers might join the new scheme.

Finally, the Minister will consider any other applications for approval that have been made. All of these things help the Minister decide if the new scheme should be approved.

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"Asking for approval to run a complaint-solving service"

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Part 3 Dispute resolution
Approval of dispute resolution schemes: Approval of dispute resolution schemes

52Mandatory considerations for approval

  1. When considering an application under section 51, the Minister must have regard to the following considerations in light of the principles listed in subsection (2):

  2. whether the scheme has an appropriate purpose:
    1. whether the applicant has undertaken reasonable consultation on the scheme with members or potential members of the scheme, and persons (or their representatives) likely to be substantially affected by the scheme:
      1. whether the applicant has adequate funding to enable it to operate the scheme according to the scheme’s purpose and in accordance with the rules about the scheme:
        1. whether the applicant’s directors and senior managers are competent to manage a dispute resolution scheme:
          1. whether the scheme will accept all types of financial service providers as members and, if not, whether there are other approved dispute resolution schemes that cover all types of financial service providers:
            1. whether the scheme is capable of resolving disputes about the types of financial services provided by the members or potential members of the scheme:
              1. the amounts of money that complaints lodged with the scheme may be about, and whether those amounts are reasonable and appropriate:
                1. whether the rules about the scheme are adequate and comply with—
                  1. the principles listed in subsection (2); and
                    1. the requirements of section 63:
                    2. the number of currently approved dispute resolution schemes:
                      1. the types of financial service providers that may be members of currently approved dispute resolution schemes:
                        1. the proposed size of the scheme:
                          1. the types of financial service providers that may be potential members of the scheme:
                            1. any other applications for approval that have been made.

                              1. The principles are—

                              2. accessibility:
                                1. independence:
                                  1. fairness:
                                    1. accountability:
                                      1. efficiency:
                                        1. effectiveness.

                                          Notes
                                          • Section 52(1)(da): inserted, on , by section 32 of the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2014 (2014 No 34).
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