Dalziel Lianne: Financial Service Providers (Registration and  Dispute Resolution) Bill — Second Reading In Committee 
Text is incorporated into the Bound Volume 
Dalziel Lianne: Financial Service Providers (Registration and  Dispute Resolution) Bill — Second Reading In Committee 
[Sitting date: 23 September 2008. Volume:650;Page:19019. Text is incorporated into the Bound Volume.] 
Hon LIANNE DALZIEL (Minister of Commerce) 
: 
 I move  
That the Financial Service Providers (Registration and Dispute Resolution) Bill be now read a second time 
. This bill requires that all financial service providers must be registered with the New Zealand Companies Office from banks right the way through to moneylenders including the loan sharks that prey on vulnerable people. I know that in a previous debate we heard mention of a particular moneylender who was advertising rates at 8 percent but only in the small print did we notice that that was 8 percent per week not 8 percent per annum. These are the people who will now have the spotlight put upon them by the requirements to be registered. We will know who they are we will know where they operate and we will know what services they offer. The register will provide a very useful resource for consumers the industry and regulators by providing a searchable access point for information on all financial service providers in New Zealand. The register will also enable New Zealand to meet certain of its anti - money-laundering obligations under the Financial Action Task Force’s requirements. 
I am aware that the Opposition spokesperson on commerce may be somewhat surprised that we are dealing with this bill in the order that we are so I think it is probably worthy of a slight diversion from my speech to say that one thing that had not been appreciated—something that I had overlooked myself—was that there are cross-references to the Financial Advisers Bill. For that bill to take effect in the time frame we want we have to pass this bill pretty much at the same time so that the cross referencing can take effect at the point that both bills are brought into— 
Nathan Guy 
: It’s good you’ve got that organised. 
Hon LIANNE DALZIEL 
: Yes I apologise to the House if that has caused a problem. The bill also requires all financial service providers who provide a service to the public to belong to an approved dispute resolution scheme. Approved dispute resolution schemes will hopefully build on the existing industry-led dispute resolution schemes in the financial sector. I pay particular tribute both to the Banking Ombudsman and Insurance and Savings Ombudsman schemes and to the organisations that have established them because the banking sector and the insurance and savings sector have set up schemes well ahead of the Government’s requiring such schemes to be set up. I think the Banking Ombudsman scheme has been in place for something like 13 or 14 years. It is a tremendous resource and support for consumers of the banking industry and the level of work that is done is considerable given the complexity of some of the issues that have to be dealt with. The bill provides that the Minister of Consumer Affairs may approve industry-led schemes that meet the principles of accessibility independence fairness accountability efficiency and effectiveness as well as fulfil a number of operational and capability requirements. 
Simon Power 
: No—make the Minister of Commerce do it! 
Hon LIANNE DALZIEL 
: The very generous Opposition spokesperson on commerce suggests that it should be the Minister of Commerce who takes up that role but in fact the Banking Ombudsman and the Insurance and Savings Ombudsman and the codes of practice they operate under directly relate back to the Minister of Consumer Affairs and it is the Minister of Consumer Affairs who has oversight in that area. Therefore it makes sense for consumer dispute resolutions services to sit with the Minister of Consumer Affairs—it just makes very good sense—and it enables the very good Minister of Commerce to get on with the job of dealing with the more detailed elements of the Review of Financial Products and Providers that are yet to come because these bills are the first of several bills and maybe the member has forgotten that nine discussion documents resulted in the legislation we have now and in future legislation to come. 
The legislation will also establish a reserve scheme so that financial service providers who are not members of an approved industry-led scheme will be able to meet registration requirements. One of the issues that came very very clearly out of the Finance and Expenditure Committee was that there is very much a need for certainty for consumers so that when they make an initial approach it is almost like a single entry point for any dispute resolution. I think we are going to be working very closely on the development of the regulations around the various schemes that will operate in this space to make sure there are no wrong doors and that anyone who makes an inquiry in this area is able to get the assistance needed. 
I will not go through the detail of the changes that were made at the select committee. Again this select committee focused its attention very much on legislation that is detailed but the committee probably did not have some of the more difficult elements of the preceding legislation. There was good support on both sides of the House to see this legislation pass through the House. I am not going to hold it up any further; I simply commend the bill to the House.