Massive increase in membership of ISO Scheme

Membership of the Insurance & Savings Ombudsman Scheme (the ISO Scheme) has increased from 50 to 1,350.

The new members are financial service providers.

“We’re really excited by the fact that so many financial service providers have chosen to join the ISO Scheme,” Insurance & Savings Ombudsman Karen Stevens said.

Under the Financial Service Providers (Registration and Dispute Resolution) Act 2008, all financial service providers, including financial advisers, have to be registered with the Companies Office by 1 April 2011.

One of the requirements of registration is that providers belong to an approved dispute resolution scheme. The ISO Scheme was approved in May 2010, and is one of four such schemes.

“The new members and their customers will get the benefit of our experience as an established industry Ombudsman scheme,” Ms Stevens said.

The ISO Scheme is one of only two industry schemes in New Zealand able to use the term “Ombudsman” under the Ombudsmen Act 1975. That means the ISO Scheme must provide independent, accessible and impartial complaints handling.

“As well as maintaining the Ombudsman standard, we work with members to establish their own internal dispute resolution processes,” Ms Stevens said.

Ms Stevens has been speaking at Institute of Financial Advisers events around the country over recent months, ensuring its members are aware of the requirements to belong to an approved dispute resolution scheme.

The ISO Scheme expects more financial service providers will join in the coming months as people realise the legislation applies to them.

ENDS

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