Changes have been made to the Fair Trading Act which give investors in long term savings products greater protection if they find they have been mislead or deceived.
The changes, announced by Minister of Consumer Affairs Robyn MacDonald, have been welcomed by the Retirement Commissioner Colin Blair, and the Consumers' Institute.
Retirement Commissioner Colin Blair says the changes improve savers' rights and protections.
Previously savers had three years from the date an investment started in which to lodge a claim if they found they had been misled or deceived.
Under the changes consumers now have three years to lodge a claim from whenever the loss or likelihood of losses resulting from the breach is discovered.
"This is good news for savers, because they will be better protected under law when they purchase long term savings and investment products," Blair says.
"Experience has shown that it may be many years after committing to a scheme that savers become aware they have been mislead as to the particular attributes of that scheme."
Last year the Periodic Reporting Group on Retirement Income Policies supported a proposal that the period for lodging a claim for loss arising from a breach of the Fair Trading Act be extended from three years to 15 years from the time of the alleged breach.
Blair says the Government's announcement goes even further than that.
"This is an improvement to the protections for New Zealand consumers," he says.
Changes have been made to the Fair Trading Act which give investors in long term savings products greater protection if they find they have been mislead or deceived.