Financial Service Providers (Registration and Dispute Resolution) Amendment Bill

Financial Service Providers (Registration and Dispute Resolution) Amendment Bill The Parliament of New Zealand enacts as follows: 1 Title This Act is the Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2025 . 2 Commencement This Act comes into force on the day after Royal assent. 3 Principal Act This Act amends the Financial Service Providers (Registration and Dispute Resolution) Act 2008. 4 Section 52 amended (Mandatory considerations for approval) After section 52(1)(c), insert: ca whether the requirements prescribed under section 79(1)(caa) (if any) are complied with: 5 Section 56 amended (Withdrawal of approval) In section 56(1)(a), after requirement , insert (for example, a requirement under section 79(1)(caa) ) . Repeal section 56(1)(e)(iii). In section 56(1)(g), replace section 67 with section 67, 67D(1), 67F, or 70 . 6 Section 63 amended (Rules about approved dispute resolution scheme) Repeal section 63(1)(q). 7 New sections 67B to 67F and cross-heading inserted After section 67A, insert: Independent review 67B Independent reviews of schemes 1 The Minister may require that an independent review of 1 or more approved dispute resolution schemes be carried out by giving a written notice to the persons responsible for those schemes. 2 The notice may provide for the manner in which the review must be carried out, including providing for any of the following matters: a when and how the review must be carried out: b the reviewer: c the terms of reference for the review: d requirements for the form and content of the report on the review and for when the report must be given to the Minister: e requirements for the persons responsible for the schemes to pay fees and expenses to the reviewer (including providing for how those fees and expenses are to be ascertained and for the share of each of those persons). 3 The Minister may appoint as the reviewer any person who, in the Minister’s opinion, has the appropriate knowledge, skills, and experience to carry out the review. 4 The appointment must be made by written notice to the reviewer. 5 The Minister must ensure that each approved dispute resolution scheme is reviewed under this section at least once every 5 years. 6 In this section and sections 67D and 67E , reviewer means the person appointed under subsection (3) . 67C Minister must consult person responsible for scheme The Minister must consult the person responsible for a scheme before giving them a notice under section 67B . 67D Reasonable assistance and payment of fees and expenses 1 The person responsible for a scheme— a must give all reasonable assistance to the reviewer to enable the review to be carried out; and b must not hinder, obstruct, or delay the reviewer in carrying out the review. 2 The person responsible for a scheme must pay any fee or expense in accordance with a requirement under section 67B(2)(e) . 3 Any amount of a fee or an expense payable to a reviewer is recoverable in any court of competent jurisdiction as a debt due to the reviewer. 67E Report on review The reviewer must, as soon as practicable after completing a report on a review, give a copy of the report to the Minister and to each person responsible for a scheme to which the review relates. 67F Person responsible for scheme must respond to report 1 The person responsible for a scheme must, within 3 months after receiving a copy of the report under section 67E , give a written notice to the Minister setting out how they have addressed, or intend to address, the recommendations contained in the report (including reasons for that response). 2 The person responsible for a scheme must, within 5 working days after giving the notice to the Minister, publish the following on an internet Internet site that is publicly available (at all reasonable times): a the notice; and b the report received under section 67E . 8 Section 68 replaced (Annual report) Replace section 68 with: 68 Annual report 1 The person responsible for an approved dispute resolution scheme must supply to the Minister, within 3 months after the end of the financial year applying to the scheme, an annual report about the scheme’s operation in relation to that financial year. 2 The report must include— a information about complaints received during the financial year; and b information about any independent review under section 67B if a report on the review was received under section 67E during the financial year; and c the information about the scheme that is prescribed by the regulations (if any). 9 Section 69 amended (Person responsible for approved dispute resolution scheme must supply further information on Minister’s request) After section 69(1)(b), insert: c any further information requested by the Minister in connection with a notice given under section 67F . After section 69(1), insert: 1A The person responsible for an approved dispute resolution scheme must supply the requested information within the time and in the manner specified by the Minister. 10 Section 70 amended (Annual report and information requested by Minister to be publicly available) In the heading to section 70, delete and information requested by Minister . 11 Section 79 amended (Regulations under this Part) After section 79(1)(c), insert: caa prescribing requirements for the membership of the board or other governing body of the person responsible for an approved dispute resolution scheme, for its chairperson, and for any deputy or acting chairperson, including prescribing any of the following (which may be specified for 1 or more members or for the board or other governing body as a group) : i requirements for the knowledge, skills, and experience of members ( see subsection (1BA) ) : ii grounds for disqualifying a person from being a member ( see subsection (1BA) ) : iii requirements to ensure that members, and the board or other governing body, are reasonably independent of any financial service provider or group of financial service providers (for example, to prevent a member from representing, or promoting the interests or views of, any industry participants): iii requirements to ensure that the board or other governing body is reasonably independent of any financial service provider or group of financial service providers (for example, limits on the number or proportion of members of the board or governing body who may represent, or promote the interests or views of, any industry participants): Repeal section 79(1)(e). After section 79(1B), insert: 1BA The matters referred to in subsection (1)(caa)(i) and (ii) may be specified for 1 or more members or for the board or other governing body as a group. In section 79(1C), replace (1)(ca) with (1) (caa) , (ca), . 12 New section 79AAA inserted (Validity of appointments and acts not affected by failure to comply with regulations) After section 79, insert: 79AAA Validity of appointments and acts not affected by failure to comply with regulations 1 The validity of the following is not affected by any failure to comply with a requirement prescribed under section 79(1)(caa) : a the appointment of a person as a member, chairperson, or deputy or acting chairperson of a board: b the acts of a board: c the acts of a person as a member, chairperson, or deputy or acting chairperson of a board. 2 In this section, board means the board or other governing body of the person responsible for an approved dispute resolution scheme. 13 Schedule 1AA amended In Schedule 1AA,— a insert the Part set out in the Schedule of this Act as the last Part; and b make all necessary consequential amendments. New Part 3 inserted into Schedule 1AA 3 Provision relating to Financial Service Providers (Registration and Dispute Resolution) Amendment Act 2025 5 Changes to remove rules about independent reviews do not need to be notified or considered Sections 65 and 66 do not apply to any of the following changes to the rules about a dispute resolution scheme: a a change to remove rules that provide for, or set out, matters for the purposes of section 63(1)(q) (as in force before its repeal): b a change that is consequential on a change referred to in paragraph (a) .