tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 7th, 8:03AM

News

rss
Latest Headlines

Reserve dispute resolution scheme wants to be "independent"

The Institute of Financial Advisers is calling for the financial advice industry to have a voice in the ruling of disputes once the reserve dispute resolution scheme gets up and running.

Wednesday, April 21st 2010, 8:53PM 1 Comment

by Sonia Speedy

Ministry of Consumer Affairs consumer policy manager Evelyn Cole says the operation of the reserve scheme will be independent of industry members. This includes considering and ruling on disputes.

However, she says the establishment of an advisory board to help the Ministry and the reserve scheme provider in advising on the operation of the scheme is proposed and will be established later this year.

Institute of Financial Advisers president Lyn McMorran is adamant that people with relevant professional expertise in the industry should be included on the panel that rules on disputes.

"I don't know how many people they're planning on having on their panel, but I think there needs to be a voice for the industry at least," she says.

"...Somebody that understands the complexities of how you provide advice. What does good practice advice look like? They wouldn't have a clue," she says.

McMorran questions why anyone would join a scheme provided by a body that knows nothing about their industry.

"I'm quite sure that the lawyers' association disputes scheme have people who are actually lawyers (involved in) their disputes resolution disciplinary process. I'm quite sure that accountants do. I can't imagine any profession that wouldn't," she says.

McMorran is also critical of the level of consultation shown by the Ministry, saying that while other bodies have been very consultative with the industry, she had never been contacted by the Ministry of Consumer Affairs.

Cole says the reserve scheme rules should be finalised by mid-May and the provider finalised by the end of May to mid-June. However, the Ministry could not say how many applications had been made to provide the reserve scheme and from whom.

Dispute Resolution Services Ltd manager of client and business development, Paul King, confirmed it had put in an application for the role of reserve scheme provider. But he declined to comment further until a formal announcement was made as to who would run the scheme.

Aside from the reserve scheme, Cole says two applications have been received for approval as dispute resolution schemes for the industry. This includes Financial Services Complaints Limited and the Insurance and Savings Ombudsman Scheme. The Ministry has also been advised that an application will be forwarded by the Banking Ombudsman Scheme.

 

« Sovereign paying for advisers to studySovereign takes regulation bull by the horns »

Special Offers

Comments from our readers

On 12 May 2010 at 2:12 pm Kirsty Armstrong said:
Working in the finance industry I agree with Lyn McMorran's comments. The Ministry has in the past contacted the firm where I work to state we are wrong in our interpretation of certain legislation yet has failed to adequately argue the alternative. The scheme should certainly have representatives from the industry who can give a practical view point as the Ministry does not know the workings of certain elements well enough.
Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Advisors must take note of supervisor guidelines on AML/CFT
    “When I read this, the following memory plucked a note. Venue was a US financial planning conference maybe 30 years ago. Speaker...”
    1 day ago by Murray Weatherston
  • Partners kills its matrix
    “@Backstage, thanks. I agree there is no relationship to CoFI, though, from a service perspective, I have two other providers...”
    3 days ago by JPHale
  • Partners kills its matrix
    “Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which...”
    4 days ago by Amused
  • Partners kills its matrix
    “Insurance companies should stick to their lane. They are not advisers and even those that employ advisers should not be crossing...”
    4 days ago by Tash
  • [GRTV] The nitty gritty of Smart’s ETFs
    “Advisors should consider all gateways into investment markets including cheaply priced ETFs to provide access to low priced...”
    4 days ago by Pragmatic
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com