Financial Services Complaints Limited (FSCL), an authorised dispute resolution scheme under New Zealand’s Financial Service Providers (Registration and Dispute Resolution) Act 2008, has commenced its third independent review.
The review, conducted every five years, examines whether FSCL continues to meet its core principles of accessibility, accountability, efficiency, effectiveness, fairness, and independence.
The FSCL board has engaged Nanette Moreau Hammond to oversee the review process.
Hammond, who has extensive experience in oversight roles, is the chair of the Advertising Standards Authority Appeal Board and a member of the Electricity Authority’s Security and Reliability Council. She previously served as commissioner and chief executive at Utilities Disputes Limited.
The independent review aims to evaluate FSCL’s performance in resolving and preventing complaints effectively and equitably. Special attention will be given to accessibility, fairness, and the overall effectiveness of the organisation.
Recommendations will be made to ensure FSCL continues to meet its statutory obligations and service expectations.
Detailed guidance for the review is outlined in the “FSCL Independent Review Terms of Reference 2025” and the “Issues Paper 2025.”
Stakeholders and members of the public are encouraged to provide their input on FSCL’s operations. Submissions must be submitted by Feb. 7.
Responses can be emailed to [email protected] or mailed to Nanette Moreau Hammond, PO Box 5967, Wellington 6140.
Individuals needing assistance to make a submission can contact FSCL by emailing [email protected] or calling 0800 347 257. Stephanie Newton is available to provide additional guidance.
FSCL’s 2023-24 annual report highlighted a significant rise in complaints and disputes. Complaints increased by 6% in the 2023-24 year, totalling 1,426 cases, while formal disputes – cases requiring in-depth investigation – rose by 10% to 359. Completed investigations saw a 33% jump.
The majority of disputes involved complaints against lenders, with consumer credit products accounting for 29% of investigations, followed by credit cards at 14% and mortgages at 11.5%. Complaints against financial advisers, insurers, and card issuers also showed year-on-year increases, rising by 18%, 14.5%, and 14%, respectively.
Key issues reported by consumers included financial hardship, miscommunication, fraud, and disputes over business loans.
FSCL Financial Ombudsman Susan Taylor noted that communication breakdowns frequently contribute to complaints.
“This can include breakdowns in passing on important information, poor understanding of clients, and ambiguous or poorly worded communication,” she said.
