The Financial Service Providers (Registration and Dispute Resolution) Amendment Bill (which was formerly part of the Credit Contracts and Financial Services Law Reform Bill) is expected to pass its third reading this week. The Bill provides for staggered commencement dates (through Orders in Council) with a long-stop date of 12 months of the Act receiving Royal assent for any outstanding provisions.
The Bill makes various amendments to the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (FSPA). These include:
- removing the requirement for the government-established reserve scheme;
- addressing issues relating to overseas-based entities registering in New Zealand solely for reputational reasons;
- providing additional powers to the Registrar of Financial Service Providers and the Financial Markets Authority to assess whether a financial service provider should be declined for registration or deregistered;
- allowing the Registrar of Financial Service Providers to share information with the Commerce Commission, for, among other purposes, enforcement; and
- requiring dispute resolution schemes to communicate with the Commerce Commission if they receive a series of complaints about a single creditor or a class of creditors.