Govt dispute resolution scheme in the gun

The Ministry of Economic Development raised the issue of dispute resolution schemes in its briefing to the Minister of Consumer Affairs, noting there were four in the financial sector and suggesting the government should look at merging them into one scheme.

But Susan Taylor, chief executive of rival scheme Financial Services Complaints Limited (FSCL), said the real issue was what role the government's scheme should play.

She said FDR, which as well as fees from its members also receives a $30 per year levy on financial service providers, was originally set up with the purpose of being a reserve scheme for those who weren't members of one of the other three schemes (FSCL, ISO, Banking Ombudsman).

"However, the government shifted the goalposts at the last minute in 2010 and allowed FDR to compete with the private sector - it did so with the government subsidy.