(1) A person to whom this Act applies must not provide a financial service in the course of business be in the business of providing a financial service unless that person is registered under this Part.

(2) A person to whom this Act applies must not provide a licensed service in the course of business unless that person is registered under this Part as a licensed provider in relation to that particular licensed service.

(3) Every person who knowingly breaches subsection (1) or (2) commits an offence and is liable on summary conviction,—

• (a) in the case of an individual, to imprisonment for a term not exceeding 2 years 12 months or to a fine not exceeding $100,000, or to both; or

• (b) in the case of a body corporateperson who is not an individual, to a fine not exceeding $300,000.

(1) A person to whom this Act applies must not hold out (whether directly or indirectly) in the course of business that the person is registered under this Act or, entitled, qualified, able, or willing to be in the business of providing a financial serviceprovide a financial service unless that person is registered under this Part.

(2) Every person who knowingly breaches subsection (1) commits an offence and is liable on summary conviction,—

• (a) in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $100,000, or to both; or

• (b) in the case of a body corporateperson who is not an individual, to a fine not exceeding $300,000.

A person is qualified to be registered as a financial service provider if—

• (a) the person is not disqualified under section 13; and

• (b) the person is a member of an approved dispute resolution scheme if required by section 44or the reserve scheme if the person provides a financial service to the public; and

• (c) the person has a licence to provide any licensed services the person provides or offers to provide.

(1) A person is disqualified if,—

• (a) in the case of an individual, the individual is disqualified under subsection (2); or

• (b) in the case of a person who is not an individual, the person has a controlling owner, director, or senior manager who is disqualified under subsection (2).

(2) The following persons are disqualified:

• (a) an undischarged bankrupt:

• (b) a person prohibited from being a director or promoter of, or concerned in the management of, an incorporated or unincorporated body under the Companies Act 1993, the Securities Act 1978, the Securities Markets Act 1988, or the Takeovers Act 1993:

• (c) a person subject to a management banning order under the Securities Act 1978, the Securities Markets Act 1988, the Takeovers Act 1993, or subject to an order under section 108 of the Credit Contracts and Consumer Finance Act 2003:

• (ca) a person who has been convicted of an offence against section 10, 11, or 40 within the past 5 years:

• (d) a person who has been convicted of an offence relating to fraud or dishonesty under sections 217 to 266 of the Crimes Act 1961) within the past 5 years:

• (e) a person who has been convicted of a money laundering offence or an offence relating to the financing of terrorism:

• (f) a person who is subject to a confiscation order under the Proceeds of Crime Act 1991.

(3) A member of a local authority must be treated as if he or she is not disqualified.

(1) An application to be registered as a financial service provider must be made to the Registrar and—

• (a) contain the following (as relevant to the applicant):

  • (i) the name and business address of the applicant:

  • (ii) the name and business address of the approved dispute resolution scheme or the reserve scheme of which the applicant is a member:

  • (iii) whether the applicant is applying in relation to a licensed service, and if so, which particular licensed service; and

• (b) be in the form (if any) required by the Registrar; and

• (c) confirm that the applicant is not disqualified under section 13; and

• (d) contain, or be accompanied by, any other prescribed information or documents; and

• (e) be accompanied by the prescribed fee (if any).

(2) If the application relates to a licensed service, it must be accompanied by any prescribed information required to obtain an appropriate licence.

(1) If the Registrar accepts that an applicant is qualified to be registered as a financial service provider, the Registrar must—

• (a) enter the following details on the register (as relevant to the provider):

  • (i) the name and business address of the provider:

  • (ii) the name and business address of the approved dispute resolution scheme or the reserve scheme of which the provider is a member:

  • (iii) if the provider is a licensed provider in relation to a particular licensed service, that fact and the name and business address of the licensing authority that has licensed that provider:

  • (iv) any other information prescribed in regulations; and

• (b) allocate a due date for the provider’s annual confirmation, notify the provider of that date, and notify that date on the register.

(2) If the Registrar does not accept that an applicant is qualified to be registered as a financial service provider, the Registrar must notify the applicant and any relevant licensing authority of the Registrar’s decision.

(1) Each of the following persons must notify the Registrar about the following relevant changes relating to a financial service provider:

• (a) a financial service provider, if the provider knows that the provider is no longer qualified for registration in accordance with section 12:

• (b) the licensing authority in relation to a provider who is no longer licensed:

• (c) the person responsible for an approved dispute resolution scheme or the reserve scheme of which a financial service provider was a member, if the person knows that the provider is no longer a member of that scheme.

(2) The time within which a person must notify the Registrar under subsection (1) is 10 working days from the date the person comes to know about the change.

(3) A financial service provider who breaches subsection (1)(a) commits an offence and is liable on summary conviction to a fine not exceeding $10,000.

(4) A person who breaches subsection (1)(c) commits an offence and is liable on summary conviction to a fine not exceeding $10,000.

(1) The Registrar must deregister a financial service provider after a notice period in accordance with sections 18 and 19, if the Registrar is satisfied that the provider is no longer—

• (a) is no longer qualified to be registered in accordance with section 12; or

• (b) is no longer in the business of providing or offering to provide a financial service; or

• (c) has been registered because of a false or misleading representation or omission; or

• (d) has proffered an application fee or annual confirmation fee that has subsequently been dishonoured, declined, or reversed.

(2) The Registrar must deregister a financial service provider if the provider so requests in writing, with effect from the any future date requested by the provider. The Registrar must notify any relevant licensing authority of this deregistration.

(3) For the purposes of this section and sections 18 and 19, notice period means 20 working days from the date of the Registrar’s notification under section 18.

(1) The Registrar must notify a financial service provider and any relevant licensing authority of the Registrar’s intention to deregister the provider under section 17(1).

(2) The Registrar’s notice must set out—

• (a) that the Registrar intends to deregister the provider under either section 17(1)(a) or (b) 17(1) (stating whichever paragraph applies); and

• (b) the reasons why the Registrar considers the relevant paragraph in section 17(1)(a) or (b) 17(1) applies; and

• (c) that there is a notice period before deregistration occurs during which the provider may object, under section 19, to the deregistration.

(1) During the notice period, the financial service provider may object (with reasons) to the proposed deregistration under section 17(1).

(2) If the Registrar receives an objection under subsection (1) within the notice period, the Registrar must consider the objection and must not proceed with a deregistration under section 17(1), unless the Registrar is satisfied that the financial service provider is no longer—

• (a) qualified to be registered in accordance with section 12; or

• (b) providing or offering to provide a financial service.

(2) If the Registrar receives an objection under subsection (1) within the notice period, the Registrar must consider the objection and must not proceed with a deregistration under section 17(1), unless the Registrar is satisfied that any of paragraphs (a) to (d) of section 17(1) applies.

If the Registrar proceeds with deregistration deregisters a financial service provider, the Registrar must notify—

• (a) the financial service provider of the deregistration and, stating the provider’s right of appeal to the High Court against the deregistration under section 41; and

• (b) any relevant licensing authority of the deregistration; and

• (c) the public, by a notice that is publicly available on an Internet site (at all reasonable times) for not less than 20 working days.

(1) The Registrar may reregister a financial service provider who was deregistered—

• (a) on the grounds set out in section 17(1)(b) if the Registrar is satisfied that the financial service provider was still in the business of providing a financial service at the time of deregistration; or

• (b) on the grounds set out in section 17(1)(d) if the Registrar is satisfied that the application fee or annual confirmation fee has been paid.

(2) A reregistration is effective from the date of deregistration as if the deregistration had not occurred.

(3) If the Registrar reregisters a financial service provider, the Registrar must notify—

• (a) the financial service provider; and

• (b) any relevant licensing authority; and

• (c) the public, by a notice that is publicly available on an Internet site (at all reasonable times) for not less than 20 working days.

(1) The Governor-General may, by Order in Council made on the recommendation of the Minister, declare (with or without conditions) that an entity is a responsible financial service provider.

(2) The Minister may make a recommendation under subsection (1) only if—

• (a) the entity has applied to the Minister to be declared a responsible financial service provider; and

• (b) the entity has affiliated entities who each would qualify to be registered as a financial service provider under section 12; and

• (c) the entity undertakes to be responsible for the financial services provided by any of the affiliated entities; and

• (d) the Minister is satisfied that declaring the entity to be a responsible financial service provider would be in the public interest.

(3) The Order in Council must identify the affiliated entities of the responsible financial service provider.

If an approved professional body notifies the Registrar, under section 51 of the Financial Advisers Bill, of the details of a provider of a financial adviser service, the Registrar must—

• (a) enter those details on the register; and

• (b) allocate a due date for the provider’s annual confirmation to be sent under section 27, notify the approved professional body of that date, and notify that date on the register.

The Registrar must deregister a provider of a financial adviser service who has ceased to be a member of an approved professional body.

The Registrar must establish and maintain a register of financial service providers and financial advisers.

(1) The register may be kept as an electronic register or in any other manner that the Registrar thinks fit.

(2) The register must be available for access and searching by the public at all times unless—

• (a) the Registrar suspends the operation of the register, in whole or in part, in accordance with subsection (3); or

• (b) otherwise prescribed.

(3) The Registrar may refuse access to the register or otherwise suspend the operation of the register, in whole or in part, if the Registrar considers that it is not practical to provide access to the register.

(2) The register must be available for access and searching by members of the public at all times unless suspended under subsection (3).

(3) The Registrar may refuse access to the register or suspend its operation, in whole or in part,—

• (a) if the Registrar considers that it is not practical to provide access to the register; or

• (b) for any other reason that is prescribed by regulations made under this Act.

The purposes of the register are—

• (a) to enable the public and any person referred to in paragraph (b) to—

  • (i) identify registered financial service providers and financial advisers; and

  • (ii) access information about—

    • (A) how to contact registered persons; and

    • (A) the name and business address of a registered financial service provider; and

    • (B) the approved dispute resolution scheme or the reserve scheme of which a registered personfinancial service provider is a member (if required by section 44); and

    • (C) whether a registered financial service provider provides a licensed service; and

    • (D) in relation to a financial adviser, the approved professional body of which the financial adviser is a member; and

• (b) to assist any person in the exercise of the person’s powers or the performance of the person’s functions under this Act or any other enactment; and

• (c) to conform with New Zealand’s obligations under the FATF Recommendations.

The register must contain the following information about each registered person (to the extent that the information is relevant):

• (a) the personregistered financial service provider’s name and business address:

• (b) whether the person is a financial service provider or a financial adviser:

• (c) the name and business address of the approved dispute resolution scheme or the reserve scheme of which the person registered financial service provider is a member:

• (ca) in relation to a licensed provider, the licensed service the provider is licensed to provide:

• (d) in relation to a licensed provider, the name and business address of the licensing authority that has licensed that provider:

• (e) in relation to a financial adviser, the name and business address of the approved professional body of which that financial adviser is a member:

• (f) any other information prescribed in regulations.

(1) Each registered financial service provider must supply to the Registrar each year by the due date an annual confirmation of details relating to that provider.

(2) Each approved professional body (on behalf of each registered member) must supply to the Registrar each year by the due date an annual confirmation of details relating to that member.

(3) The annual confirmation must be in the form required by the Registrar (if any) and be accompanied by the prescribed fee (if any).

(3) The annual confirmation must—

• (a) be in the form (if any) required by the Registrar and be accompanied by the prescribed fee (if any); and

• (b) confirm that the provider is not disqualified under section 13; and

• (c) contain, or be accompanied by, any other prescribed information or documents.

(4) If a registered financial service provider does not comply with subsection (1) within 3 months of by the due date, the Registrar may assume that the provider is no longer in the business of providing or offering to provide a financial service and sections 17 to 19 apply.

The Registrar must amend the register if—

• (a) an annual confirmation contains information that is different from the information entered on the register (where the Registrar is satisfied that the situations described in section 17(1) do not apply); or

• (b) a financial service provider or an approved professional body (on behalf of a registered member) informs the Registrar of changes to the name and business address of the provider or to the approved dispute resolution scheme to which the provider belongs; or

• (b) a financial service provider informs the Registrar of information that is different from the information entered on the register (where the Registrar is satisfied that the situations described in section 17(1) do not apply); or

• (c) a licensing authority informs the Registrar that a registered financial service provider has become a licensed provider in relation to a particular licensed service; or

• (d) the Registrar is satisfied at any time that the register contains a typographical error, or a mistake, or omits information that was supplied to the Registrar; or

• (e) any other information prescribed by regulations.

The Registrar may refuse to accept a document received by the Registrar under this Act if that document—

• (a) is not in the required form (if any); or

• (b) does not comply with prescribed requirements.

The register may be searched only by reference to criteria to be specified in the regulations the criteria specified in section 26(a) to (f) and any other criteria prescribed in regulations.

The register may be searched for the following purposes:

• (a) by an individual, or a person with the consent of the individual, for the purpose of searching for information about that individual in accordance with the Privacy Act 1993:

• (b) by a person for a purpose referred to in section 25:

• (c) by a person for the purpose of advising another person in connection with any of the purposes referred to in this section.

A person who searches a public register for personal information for a purpose that is not a purpose set out in section 31 must be treated, for the purposes of Part 8 of the Privacy Act 1993, as if that person has breached an information privacy principle under section 66(1)(a)(i) of that Act.

(1) The Registrar may communicate to any of the agencies persons or bodies referred to in subsection (4) any information that the Registrar—

• (a) holds (other than on the register) in relation to the exercise of the Registrar’s powers or the performance of the Registrar’s functions and duties; and

• (b) considers may assist the agency person or body in the exercise of its powers or the performance of its functions and duties.

(2) The Registrar may use any information communicated to the Registrar by an agency a person or body referred to in subsection (4) in the Registrar’s exercise of the Registrar’s powers or the performance of the Registrar’s functions and duties.

(3) This section applies despite anything to the contrary in any enactment, contract, deed, or document.

(4) The agencies persons or bodies to which this section applies are—

• (a) the Securities Commission; and

• (b) the Reserve Bank of New Zealand; and

• (ba) a licensing authority identified in Schedule 2:

• (bb) the New Zealand Police:

• (bc) the person responsible for an approved dispute resolution scheme:

• (bd) the person responsible for the reserve scheme:

• (c) a prescribed agency that carries out supervisory or enforcement functions relating to money laundering or terrorist financing; and:

• (d) a prescribed overseas agency that is the equivalent of the Registrar or of a body referred to in paragraphs (a) to (c), but only where there is a written agreement between the overseas agency and the Minister about sharing the information.

(1) The chief executive must appoint a Registrar of Financial Service Providers and Financial Advisers under the State Sector Act 1988.

(2) The person holding office as Registrar of Companies under the Companies Act 1993, immediately before the commencement of this Act, is deemed to have been appointed as the first Registrar of Financial Service Providers and Financial Advisers in accordance with this section.

(1) The Registrar may delegate to any person, either generally or particularly, any of the Registrar’s functions, duties, and powers except the power of delegation.

(2) A delegation—

• (a) must be in writing; and

• (b) may be made subject to any restrictions and conditions the Registrar thinks fit; and

• (c) is revocable at any time, in writing; and

• (d) does not prevent the performance or exercise of a function, duty, or power by the Registrar.

(3) A person to whom any functions, duties, or powers are delegated may perform and exercise them in the same manner and with the same effect as if they had been conferred directly by this Act and not by delegation.

(4) A person who appears to act under a delegation is presumed to be acting in accordance with its terms in the absence of evidence to the contrary.

(1) The Registrar, or a person authorised by the Registrar, may take any of the steps listed in subsection (2) for the purpose of ascertaining whether a person—

• (a) is in the business of providing or has provided a financial service in breach of section 10; or

• (b) is offering or has offered to provide a financial service; or

• (c) is holding out or has held out that the person provides or has provided is in the business of providing a financial service in breach of section 11; or

• (d) is qualified or has been qualified to be registered in accordance with section 12; or

• (e) has made a false or misleading representation or omission in breach of section 40.

(2) The steps referred to in subsection (1) are the following:

• (a) requiring a person to produce for inspection relevant documents within that person’s possession or control:

• (b) inspecting and taking copies of relevant documents:

• (c) taking possession of relevant documents and retaining them for a reasonable time for the purpose of taking copies.

(2A) Any person who exercises powers under subsection (1) must make his or her authorisation from the Registrar available on request.

(3) Nothing in this section limits or affects the Tax Administration Act 1994 or the Statistics Act 1975.

(4) A person must not obstruct or hinder the exercise of a power conferred by subsection (1).

(5) If a registered financial service provider does not comply with a requirement under subsection (2)(a) within 20 working days from the date the requirement was notified to the provider, the Registrar may assume that the provider is no longer in the business of providing or offering to provide a financial service and sections 17 to 19 apply.

(6) A person who knowingly fails to comply with a requirement under subsection (2) commits an offence and is liable on summary conviction,—

• (a) in the case of an individual, to a fine not exceeding $30,000:

• (b) in the case of a body corporateperson who is not an individual, to a fine not exceeding $300,000.

(7) A person who breaches subsection (4) commits an offence and is liable on summary conviction,—

• (a) in the case of an individual, to a fine not exceeding $30,000:

• (b) in the case of a body corporateperson who is not an individual, to a fine not exceeding $300,000.

(8) In this section, relevant document means a document that contains information relating to whether a person—

• (a) is in the business of providing or has provided a financial service; or

• (b) is offering or has offered to provide a financial service; or

• (c) is holding out or has held out that the person provides or has provided is in the business of providing a financial service in breach of section 11; or

• (d) is qualified or has been qualified to be registered in accordance with section 12; or

• (e) has made a false or misleading representation or omission in breach of section 40.

(1) A person authorised by the Registrar for the purposes of section 36 who has obtained a document or information in the course of making an inspection under that section or prepared a report in relation to an inspection under that section must, if directed to do so by the Registrar, give the document, information, or report to—

• (a) the Registrar; or

• (b) the Minister; or

• (c) the chief executive; or

• (d) any person authorised by the Registrar to receive the document, information, or report for the purposes of this Act.

(2) A person authorised by the Registrar for the purposes of section 36 who has obtained a document or information in the course of making an inspection under that section or prepared a report in relation to an inspection under that section must not disclose that document, information, or report, except—

• (a) in accordance with subsection (1); or

• (b) subject to the approval of the Registrar, with the consent of the person to whom it relates; or

• (c) subject to the approval of the Registrar, for the purposes of this Act; or

• (d) to the extent that the information, or information contained in the document or report, is available under any Act or in a public document.

(3) A person who fails to comply with this section commits an offence and is liable on summary conviction to a fine not exceeding $10,000.

(1) Despite any other provision of any Act or any rule of law, if a person appeals or applies to the High Court in relation to an act or decision of the Registrar or a person authorised by the Registrar under section 36, until a decision on the appeal or application is given,—

• (a) the Registrar, or that authorised person, may continue to exercise the powers under that section as if no such appeal or application had been made; and

• (b) no person is excused from fulfilling an obligation under that section by reason of that appeal or application.

(2) Subsection (3) overrides subsection (1).

(3) If the appeal or application is allowed or granted,—

• (a) the Registrar must ensure that, as soon as is reasonably practicable after the Court’s decision is delivered, any copy of a document taken or retained under section 36 is destroyed; and

• (b) no information acquired under section 36 is admissible in evidence in any proceedings unless the Court hearing the proceedings in which it is sought to adduce the evidence is satisfied it was not obtained unfairly.

If any financial service provider that is not an individual commits an offence against this Act, every director of the provider who knowingly authorises or knowingly fails to prevent the offence also commits an offence against this Act.

(1) Every person commits an offence who, in any document or information required by or for the purposes of this Part or by regulations (whether or not supplied to the Registrar),—

• (a) makes a representation knowing that it is false or misleading in a material particular; or

• (b) omits any matter knowing that the omission is false or misleading in a material particular.

(2) A person who is convicted of an offence under subsection (1) is liable on summary conviction,—

• (a) in the case of an individual, to imprisonment for a term not exceeding 2 years or to a fine not exceeding $100,000, or to both; or

• (b) in the case of a body corporateperson who is not an individual, to a fine not exceeding $300,000.

(1) A financial service provider who is not satisfied with any of the following decisions of the Registrar may appeal to the High Court:

• (a) not registering an applicant as a financial service provider under section 15:

• (b) a deregistration under section 17:

• (c) an act or a decision of the Registrar or a person authorised by the Registrar under section 36.

(2) The time within which an appeal under subsection (1) may be made is 20 working days after the date of notification of the decision, or within any further time that the Court allows.

(3) On appeal, the Court may do any of the following:

• (a) confirm, modify, or reverse the act or decision or any part of it:

• (b) exercise any of the powers that could have been exercised by the Registrar in relation to the matter to which the appeal relates:

• (c) refer the act or decision back to the Registrar with directions to reconsider the whole or a specified part of the act or decision.

Unless the High Court orders otherwise, a decision appealed against under section 41 continues in effect.

(1) The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:

• (a) specifying prescribing a financial service for the purposes of section 5(n):

• (b) prescribing the Crown agencies to whom this Act does not apply under section 6:

• (c) specifying information or documents to be included in, or attached to, application forms, and requiring those forms provided with, applications, and requiring documents to be signed by specified persons:

• (d) prescribing procedures, requirements, and other matters, not inconsistent with this Part or with the purposes described in section 25, for relating to the register, including matters that relate to—

  • (i) the operation of the register:

  • (ii) the information or documents to be contained in the register:

  • (iii) access to the register:

  • (iv) search criteria for the register:

  • (v) fees that may be payable in order to search the register:

• (e) prescribing either of the following types of agency:

  • (i) an agency that carries out supervisory or enforcement functions relating to money laundering or terrorist financing for the purposes of section 33(4); or

  • (ii) an overseas agency that is the equivalent of the Registrar or of a body referred to in section 33(4)(a) to (c) for the purposes of section 33(4):

• (f) prescribing fees payable to the Registrar in respect of any matter under this Part Act or the manner in which fees may be calculated:

• (g) providing for any other matters contemplated by Part 1 or by this Part, necessary for its administration, or necessary for giving it full effect.

(2) Without limiting subsection (1)(c), information or documents may be prescribed under that subsection for the purpose of assisting any person with the person’s powers, functions, or duties as a licensing authority under any enactment providing for the licensing of licensed providers (regardless of whether or not that information or documentation is collected for the purposes of this Part).

(3) The Registrar may refuse to perform a function or exercise a power until the a prescribed fee is paid.

(4) Any Order in Council made under subsection (1)(f) may—

• (a) prescribe the method of payment of a fee; and

• (b) authorise the Registrar to refund or waive, in whole or in part and on any prescribed conditions, payment of a fee in relation to any person or class of persons.

(5) Any fee or amount payable to the Registrar is recoverable by the Registrar in any court of competent jurisdiction as a debt due to the Registrar.

(1) The Ministry must, not later than 5 years after the commencement of this section,—

• (a) review the operation of this Part since the commencement of this section; and

• (b) prepare a report on the review for the Minister.

(2) The report on the review must include recommendations to the Minister on whether any amendments to the Act concerning the matters dealt with in this Part are necessary or desirable.

(3) As soon as practicable after receiving the report, the Minister must present a copy of that report to the House of Representatives.

This Act applies to the provision in New Zealand of a financial service by a person who is in New Zealand, regardless of where the financial service provider is resident, is incorporated, or carries on business.

Every financial service provider must be a member of an approved dispute resolution scheme—

• (a) if the provider provides a financial service to—

  • (i) consumers who are natural persons; or

  • (ii) businesses that have no more than 19 full-time-equivalent employees; and

• (b) if the reserve scheme has been appointed under section 66.

(1) Every financial service provider must be a member of either an approved dispute resolution scheme or the reserve scheme if the provider provides a financial service to the public.

(2) A member, in relation to an approved dispute resolution scheme or the reserve scheme, is a financial service provider who may be the subject of a complaint to that scheme.

A dispute resolution scheme is an approved dispute resolution scheme if it has been approved by the Minister in accordance with this Part and that approval has not expired or been withdrawn.

(2) An approval expires 10 years after the date it was issued.

(3) A member of an approved dispute resolution scheme is a financial service provider or a provider of a financial adviser service who may be the subject of a complaint to that scheme.

(1) The person responsible for a dispute resolution scheme may apply to the Minister for approval of the scheme.

(2) The applicant must submit the following with the application:

• (a) the rules about the scheme:

• (b) any other information that is prescribed concerning the considerations outlined in section 47:

• (c) any annual reports relating to the scheme:

• (d) any internal reviews of the scheme:

• (e) the prescribed fee (if any).

(3) The Minister may request the applicant to supply further information or documentation relating to the matters referred to in subsection (2)(a) to (d) or (b).

(1) When considering an application under section 46, the Minister must have regard to the following considerations in light of the principles listed in subsection (2):

• (a) whether the scheme has an appropriate purpose:

• (b) whether the applicant has undertaken appropriate reasonable consultation on the scheme with members or potential members of the scheme and representatives of the people referred to in section 44(a), and persons (or their representatives) likely to be substantially affected by the scheme:

• (c) whether the scheme’s proposed dispute resolution processes are timely and appropriate:

• (d) the extent to which the applicant’s governance arrangements ensure the independence and accountability of the scheme:

• (e) whether the applicant has adequate funding to enable it to operate the scheme according to the scheme’s purpose and in accordance with the rules about the scheme:

• (f) whether the applicant’s directors and senior managers are competent to manage a dispute resolution scheme:

• (g) the cost, if any, to lodge a complaint with the scheme, and whether that cost is reasonable and appropriate:

• (h) whether the scheme is capable of resolving disputes about the types of financial services provided by the members or potential members of the scheme:

• (i) the amounts of money that complaints lodged with the scheme may be about, and whether those amounts are reasonable and appropriate:

• (j) whether the rules about the scheme are adequate and comply with the principles listed in subsection (2):

• (j) whether the rules about the scheme are adequate and comply with—

  • (i) the principles listed in subsection (2); and

  • (ii) the requirements of section 58:

• (k) the number of currently approved dispute resolution schemes:

• (l) the types of financial service providers that may be members of currently approved dispute resolution schemes:

• (la) the proposed size of the scheme:

• (lb) the types of financial service providers that may be potential members of the scheme:

• (m) any other applications for approval that have been made.

(2) The principles are—

• (a) accessibility:

• (b) independence:

• (c) fairness:

• (d) accountability:

• (e) efficiency:

• (f) effectiveness.

(1) The Minister must decide an application under section 46 by approving it (with or without conditions) or by rejecting it.

(2) The Minister may only make a decision under subsection (1) after consultation with—

• (a) the Minister of Finance; and

• (b) the Minister of Consumer Affairs Commerce.

(3) The Minister may impose conditions on the approval about any or all of the following matters:

• (a) the applicant’s governance arrangements:

• (b) training requirements for people employed or engaged in the operation of the scheme:

• (c) other prescribed matters that relate to the principles listed in section 47(2).

The Minister must, as soon as practicable after deciding the application,—

• (a) notify the applicant in writing of the decision; and

• (b) ensure that the decision is—

  • (i) published in the Gazette; and

  • (ii) made available to the public by making copies of it available for inspection, free of charge, at the head office of the Ministry (during ordinary office hours), and for a reasonable period of time on an Internet site in an electronic form that is publicly available (at all reasonable times).

• (b) if the decision is to approve the application, ensure that—

  • (i) the approval is published in the Gazette; and

  • (ii) the chief executive updates the details described in section 74AA(2).

An applicant whose application has been rejected may at any time reapply under section 46.

(1) The Minister may withdraw the approval of an approved dispute resolution scheme after a notice period in accordance with sections 52 and 53 for any or all of the following reasons:

• (a) there has been a breach of a prescribed requirement:

• (b) there has been a breach of a condition of approval:

• (c) there has been a failure to comply with the rules about the scheme:

• (d) the person responsible for the scheme has not maintained or published a list of current members as required by section 57:

• (da) the person responsible for the scheme has not published the rules as required by section 59:

• (e) the person responsible for the scheme has not supplied the Minister with an annual report by 1 July as required by section 62:

• (e) the person responsible for the scheme has not supplied the Minister with any of the following:

  • (i) an annual report as required by section 62:

  • (ii) any further information requested by the Minister under section 63:

  • (iii) an independent review as required by the rule described in section 58(m):

• (f) the person responsible for the scheme has not supplied the Minister with any further information requested by the Minister under section 63:

• (g) the person responsible for the scheme has not notified the Minister within 10 working days after the date of any change made to in accordance with section 60 before changing the rules about the scheme:

• (ga) the person responsible for the scheme has not complied with section 61A:

• (h) the rules about the scheme have changed since the scheme’s approval was given, and that change means the rules—

  • (i) are no longer adequate; or

  • (ii) do not comply with the principles listed in section 47(2):

• (i) the scheme no longer satisfies the principles in section 47(2).

(2) When considering whether to withdraw an approval, the Minister must have regard to the considerations referred to in section 47(1) 47(1)(a) to (j) in light of the principles listed in section 47(2).

(3) The Minister must withdraw the approval of an approved dispute resolution scheme if the person responsible for the scheme so requests, with effect from the any future date requested.

(4) For the purposes of this section and sections 52 and 53, notice period means 20 working days from the date of the Minister’s notification under section 52(1).

(1) The Minister must notify the person responsible for the approved dispute resolution scheme of the Minister’s intention to withdraw the scheme’s approval under section 51(1).

(2) The Minister’s notice must set out—

• (a) that the Minister intends to withdraw the scheme’s approval for any or all of the grounds described in section 51(1) (stating which apply); and

• (b) the reasons why the Minister considers any or all of the grounds described in section 51(1) apply; and

• (c) that there is a notice period before the withdrawal of the scheme’s approval during which the person responsible for the scheme may object, under section 53, to the intended withdrawal.

(3) The Minister's notice may require the person responsible for the scheme to—

• (a) notify all members of the Minister's intention to withdraw the scheme's approval; or

• (b) provide the Minister with a list of the names and business addresses of current members so that the Minister can, if the Minister wishes, notify all members of the Minister's intention to withdraw the scheme's approval.

(1) During the notice period, the person responsible for an approved dispute resolution scheme may object (with reasons) to the intended withdrawal of the scheme’s approval under section 51(1).

(1) During the notice period, the person responsible for an approved dispute resolution scheme—

• (a) may object (with reasons) to the intended withdrawal of the scheme's approval under section 51(1); and

• (b) must not accept any new members.

(2) If the Minister has received an objection under subsection (1) within the notice period, the Minister must consider it and must not proceed with a withdrawal under section 51(1) unless the Minister is satisfied that any or all of the reasons set out in section 51(1) apply.

If the Minister withdraws a scheme’s approval, the scheme’s approval is withdrawn from the date the person responsible for the scheme is notified under section 55(a).

The Minister must, as soon as practicable after withdrawing the approval of a dispute resolution scheme,—

• (a) notify the person responsible for the scheme in writing of the withdrawal of the scheme’s approval; and

• (b) notify the Registrar of the withdrawal of the scheme’s approval; and

• (c) ensure that the withdrawal is—

  • (i) published in the Gazette; and

  • (ii) made available to the public by making copies of it available for inspection, free of charge, at the head office of the Ministry (during ordinary office hours), and for a reasonable period of time on an Internet site in an electronic form that is publicly available (at all reasonable times).

• (c) ensure the withdrawal is published in the Gazette; and

• (d) ensure the chief executive updates the details described in section 74AA(2).

On the date that a dispute resolution scheme’s approval is withdrawn, members of the scheme become a members of the reserve scheme (if any).

The person responsible for an approved dispute resolution scheme must maintain a list of the scheme’s current members and must publish this list on an Internet site that is publicly available (at all reasonable times).

The person responsible for an approved dispute resolution scheme must issue rules about that scheme, and those rules must provide for, or set out, the following:

• (a) which types of financial service providers and providers of a financial adviser service may be members of the scheme (all providers of that type must be eligible):

• (b) how financial service providers and providers of a financial adviser service become members of the scheme and how membership is terminated:

• (ba) that consumers and businesses that have no more than 19 full-time equivalent employees may make complaints for resolution by the scheme:

• (c) how complaints about a member may be made to for resolution by the scheme:

• (ca) a period after which the scheme, if asked by a complainant, must investigate a complaint that has been made directly to a member:

• (d) that complaints about members must be investigated in a way that is consistent with the rules of natural justice:

• (e) that complaints about members may be made relating to any of the following things:

  • (i) breaches of contract by the member:

  • (ii) breaches of statutory obligations by the member:

  • (iii) breaches of industry codes by the member:

  • (iv) any other matters provided for in the rules:

• (f) that any information may be considered in relation to a complaint and any inquiry made that is fair and reasonable in the circumstances:

• (g) the sanctions that can be imposed on a member of the scheme following remedial action that the scheme can impose on a member to resolve a complaint (for example, a requirement to change systems or to compensate a complainant up to a certain amount stated in the rules) and the compensation that can be awarded to the complainant::

• (h) how sanctions imposed and compensation awarded remedial action may be enforced against the scheme’s members, including after members have left the scheme:

• (ha) that a financial service provider who has not taken remedial action imposed on that provider by another approved dispute resolution scheme or the reserve scheme cannot join the scheme:

• (i) any provision for allocating the costs of resolving the dispute between the member complained about and the complainant:

• (i) that the scheme will not charge a fee to any complainant to investigate or resolve a complaint:

• (j) that a decision made on resolution of a complaint about a member of the scheme is binding on the member concerned, subject to an appeal under section 71:

• (k) that a decision made on resolution of a complaint about a member of the scheme is binding on the complainant concerned, subject to an appeal under section 71, if the complainant accepts the decision resolution:

• (l) that the complainant may take alternative court action against the member at any time, including if the complainant rejects the decision resolution:

• (la) that the scheme may cease investigating and resolving a complaint if the complainant takes alternative court action against the member:

• (m) that an internal independent review of the scheme must occur at least once every 3 5 years after the date of the scheme’s approval and must be supplied to the Minister within 3 months of completion:

• (n) that the person responsible for the scheme must co-operate with other approved dispute resolution schemes if a complaint involves members of those other schemes:

• (o) that the person responsible for the scheme and the scheme’s members must inform the people referred to in section 44(a)paragraph (ba) about the scheme to the extent that the members provide a financial service to those people.

A The person responsible for an approved dispute resolution scheme must make copies of the rules about the scheme available for inspection by the public, free of charge,—

• (a) at the scheme’s head office (during ordinary office hours); and

• (b) on an Internet site in an electronic form that is publicly available (at all reasonable times).

A The person responsible for an approved dispute resolution scheme must notify the Minister of a if the person wishes to change made to the rules about the scheme within 10 working days after the date of the change.

(1) Following receipt of After receiving a notification of a change of rules under section 60, the Minister may notify the person responsible for a scheme that the Minister—

• (a) approves the change; or

• (b) intends to withdraw considers the proposed change is not adequate and does not comply with—the scheme’s approval under section 51(1), and sections 51 to 56 apply.

  • (i) the principles listed in section 47(2); and

  • (ii) the requirements of section 58.

(1A) If subsection (1)(b) applies, the rule change must not be made.

(2) If the Minister does not notify the person responsible for the scheme in accordance with subsection (1) within 45 working days of the notification of the change of rules, the change is treated as having been approved by the Minister.

The person responsible for an approved dispute resolution scheme must—

• (a) co-operate with other approved dispute resolution schemes and with the reserve scheme if a complaint involves members of those other schemes (disclosing personal information in accordance with the Privacy Act 1993 and protecting information that is subject to an obligation of confidence); and

• (b) co-operate with the Registrar, including by communicating information to the Registrar in accordance with sections 16 and 33; and

• (c) if there is a series of complaints about a particular licensed provider or class of licensed provider, communicate that fact to the relevant licensing authority.

A The person responsible for an approved dispute resolution scheme must supply to the Minister, by 1 July each year within 3 months after the end of the financial year applying to the scheme, an annual report containing prescribed information about the scheme in relation to the 12 months ending on 31 March in that year that financial year.

A person responsible for an approved dispute resolution scheme must supply to the Minister any further information requested by the Minister about the information that is required by regulations to be in an annual report.

(1) The person responsible for an approved dispute resolution scheme must supply to the Minister—

• (a) any further information requested by the Minister about the information that is required by regulations to be in an annual report; and

• (b) any information requested by the Minister about the scheme's compliance with the principles listed in section 47(2).

(2) In supplying the information to the Minister, the person must disclose personal information in accordance with the Privacy Act 1993 and protect information that is subject to an obligation of confidentiality.

A The person responsible for an approved dispute resolution scheme must make copies of its annual report and any information requested under section 63 available for inspection by the public, free of charge,—

• (a) at the scheme’s head office (during ordinary office hours); and

• (b) on an Internet site in an electronic form that is publicly available (at all reasonable times).

The reserve scheme is an approved a dispute resolution scheme that has been appointed by Order in Council under section 66 to fulfill the functions of the reserve scheme.

(1) The Governor-General may, by Order in Council made on the recommendation of the Minister, appoint an approved dispute resolution scheme to be the reserve scheme (with or without conditions) for a term not exceeding the term of the scheme’s approval.

(1) The Governor-General may, by Order in Council made on the recommendation of the Minister,—

• (a) appoint a dispute resolution scheme to fulfil the functions of the reserve scheme (with or without conditions) for a term recommended by the Minister; and

• (b) prescribe rules about the functions of the reserve scheme.

(1A) Rules made under subsection (1)(b) must provide for equivalent matters to those required by section 58 to be provided for, or set out, in the rules of an approved dispute resolution scheme.

(2) The Minister may only make a recommendation only if—

• (a) the person responsible for the scheme consents in writing to the scheme being appointed to fulfil the functions of the reserve scheme in accordance with the rules made under subsection (1)(b); and

• (b) the scheme is the Minister is satisfied that the person responsible for the scheme and the scheme itself are capable of resolving disputes relating to all types of providers of all types of financial services and financial adviser services; and

• (c) the Minister is satisfied that the scheme is a formally constituted dispute resolution body with demonstrable experience; and

• (d) the Minister is satisfied that the person responsible for the scheme and the scheme itself are capable of fulfilling the functions of the reserve scheme in accordance with the rules made under subsection (1)(b).

(3) The Minister may only make a recommendation only after consultation with—

• (a) the Minister of Finance; and

• (b) the Minister of Consumer Affairs Commerce; and

• (c) any persons (or their representatives) that the Minister considers are likely to be substantially affected by the recommendation.

(4) A failure to comply with subsection (3)(c) does not affect the validity of an Order in Council made under subsection (1).

(5) Conditions that may be imposed by an Order in Council may relate to any or all of the following:

• (a) the governance arrangements of the person responsible for relating to the reserve scheme:

• (b) training requirements for people employed or engaged in the operation of the reserve scheme:

• (c) other prescribed matters that relate to the principles listed in section 47(2).

(6) The Minister's first recommendation for an Order in Council referred to in subsection (1) must be made within 2 years of this section coming into force.

(1) The Governor-General may, by Order in Council made on the recommendation of the Minister, revoke thean appointment of an approved dispute resolution scheme as the reserve scheme made under section 66(1)(a).

(2) The Minister may only make a recommendation only for any or all of the following reasons:

• (a) the reserve scheme’s approval as an approved dispute resolution scheme has been withdrawn:

• (b) the Minister is no longer satisfied that the reserve scheme is capable of resolving disputes relating to all types of providers of all types of financial services and financial adviser services:

• (ba) there has been a failure to fulfil the functions of the reserve scheme as required by rules made under section 66(1)(b):

• (bb) there has been a breach of a condition of appointment:

• (c) the person responsible for the reserve scheme requests that its the scheme's appointment as the reserve scheme be revoked.

(3) The Minister may only make a recommendation for the reasons set out in subsection (2)(ba) or (bb) only after consultation with—

• (a) the Minister of Finance; and

• (b) the Minister of Consumer Affairs Commerce.

• (c) any persons the Minister considers are likely to be substantially affected by the recommendation.

(4) A failure to comply with subsection (3)(c) does not affect the validity of an Order in Council made under subsection (1).

(5) At the same time as making a recommendation under subsection (1), the Minister must recommend that the Governor-General appoint another dispute resolution scheme to fulfil the functions of the reserve scheme under section 66(1)(a) for a term recommended by the Minister.

(1) The Minister must notify the person responsible for the reserve scheme that the Minister intends, under section 67(2)(b) 67(2)(ba) or (bb), to recommend a revocation of the reserve scheme’s appointment.

(2) The Minister’s notice must set out—

• (a) that the Minister intends, under section 67(2)(b)67(2)(ba) or (bb), to recommend a revocation of the reserve scheme’s appointment; and

• (b) the reasons why the Minister considers that section 67(2)(b) 67(2)(ba) or (bb) applies apply; and

• (c) that there is a notice period during which the person responsible for the reserve scheme may object, under section 69, to the intended recommendation.

(3) For the purposes of this section and section 69, notice period means 20 working days from the date of the Minister’s notification under subsection (1).

(1) During the notice period, the person responsible for the reserve scheme may object (with reasons) to the Minster’s intention, under section 67(2)(b) 67(2)(ba) or (bb), to recommend a revocation of the reserve scheme’s appointment.

(2) If the Minister has received an objection under subsection (1) within the notice period, the Minister must consider the objection and must not proceed with a recommendation for a revocation of the reserve scheme’s appointment under section 67(2)(b) 67(2)(ba) or (bb) unless the Minister is satisfied that section 67(2)(b) 67(2)(ba) or (bb) applies apply.

The person responsible for a reserve scheme must—

• (a) co-operate with approved dispute resolution schemes if a complaint involves members of those schemes (disclosing personal information in accordance with the Privacy Act 1993 and protecting information that is subject to an obligation of confidence); and

• (b) co-operate with the Registrar, including by communicating information to the Registrar in accordance with sections 16 and 33; and

• (c) if there is a series of complaints about a particular licensed provider or class of licensed provider, communicate that fact to the relevant licensing authority.

(1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations—

• (a) specifying that levies to fund the reserve scheme are payable by all members or by any class of members, and that different levies may apply to members who provide—

  • (i) different types of financial adviser services; or

  • (ii) different types of financial service:

• (a) specifying that levies to fund the reserve scheme are payable by all members or by any class of members, and that different levies may apply to members who provide different types of financial service:

• (b) specifying the amounts of levies payable under this section:

• (c) providing for the method by which levies will be calculated:

• (d) specifying the criteria and other requirements by and against which levies will be set or reset:

• (e) specifying the financial year or part-financial year to which levies apply:

• (f) providing for the payment and collection of levies:

• (g) exempting any member from paying levies:

• (h) providing for waivers or refunds of the whole or any part of any levy paid by any member or class of members:

• (i) providing for interest to be paid if a member fails to pay levies by the due date specified in the regulations:

• (j) enabling the reserve scheme to terminate the membership of a member who has failed to pay levies by the due date specified in the regulations.

(2) Regulations made under subsection (1) must provide that no other membership fee apart from the levies may be charged by the reserve scheme.

(3) The Minister may only make a recommendation under subsection (1) after consultation with any persons (or their representatives) that the Minister considers are likely to be substantially affected by the regulations.

(4) A failure to comply with subsection (3) does not affect the validity of an Order in Council made under subsection (1).

(1) Either party may appeal to a District Court against a decision made in accordance with an approved dispute resolution scheme on a complaint about a member of the scheme on the grounds that the dispute resolution process was unfair to the appellant and prejudicially affected the result of the decision.

(2) Without limiting the generality of subsection (1), a decision maker is deemed to have conducted the dispute resolution process in a manner that was unfair to the appellant and prejudicially affected the result if—

• (a) the decision maker failed to have regard to either of the following:

  • (i) any provision of any enactment that was brought to the attention of the decision maker before the decision maker’s decision; or

  • (ii) any rule about the scheme; and

• (b) as a result of the failure referred to in paragraph (a), the decision is unfair to the appellant.

(3) An appeal may be brought by filing a notice of appeal in the District Court within 28 days of the decision, or within any further time as a District Court Judge may, on application, allow.

(4) As soon as practicable after a notice of appeal has been filed, the appellant must serve a copy of the notice of appeal on the other party to the decision and on the person responsible for the scheme.

(5) The District Court Registrar must fix the time and place for the hearing of the appeal and must notify both parties.

(6) The filing of a notice of appeal against a decision operates as a stay of any process for the enforcement of that decision, but the District Court may at any time, on the application of either party, order that any process may be resumed or commenced or, the process having been resumed or commenced, order that it be further stayed.

(7) In this section,—

(1) Within 28 days after the notice of appeal is served on the person responsible for an approved dispute resolution scheme under section 71(4), the decision maker must file with the District Court Registrar a report on the manner in which the complaint was considered and the reasons for the decision on the complaint.

(2) Apart from filing the report under subsection (1), the decision maker, and the person responsible for the approved dispute resolution scheme (if different), may not be parties to the District Court’s decision on the appeal (except in relation to the costs of preparing and filing the report under subsection (1)).

(3) The District Court Registrar must serve a copy of the report filed under subsection (1) on both parties a reasonable period of time before the hearing of the appeal.

(1) On the hearing of an appeal, a District Court Judge may—

• (a) quash the decision appealed from and order the complaint to be reheard on any terms the Judge thinks fit; or

• (b) dismiss the appeal.

(2) In ordering a rehearing under subsection (1)(a), the Judge may give any directions the Judge thinks fit about the rehearing of the complaint.

(3) An appeal under this section is to be heard by a District Court Judge in chambers, and the procedure at the hearing may be determined by the Judge.

(1) The chief executive—

• (a) must ensure that the details described in subsection (2) are available for inspection by the public, free of charge, at the head office of the Ministry (during ordinary office hours), and on an Internet site that is publicly available (at all reasonable times):

• (b) may make copies of the details available in any other way that the chief executive considers appropriate in the circumstances.

(2) The details are—

• (a) the names of approved dispute resolution schemes and the name and business address of the person responsible for each scheme; and

• (b) the name of the reserve scheme and the name and business address of the person responsible for the reserve scheme.

(1) The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:

• (a) prescribing the information or documents to be supplied to the Minister as part of an application under this Part:

• (b) prescribing processes for applications for the approval of dispute resolution schemes:

• (c) prescribing rules for a class of approved dispute resolution scheme or for all approved dispute resolution schemes in the event that approval of those schemes is withdrawn:

• (d) prescribing the information that must be included in every annual report supplied in accordance with section 62, which must include—

  • (i) information about any internal independent review that occurred within the previous 12 months; and

  • (ii) information about a scheme’s operation (including complaints received):

• (e) prescribing fees payable in respect of any matter under this Part or the manner in which fees may be calculated:

• (f) providing for any other matters contemplated by this Part, necessary for its administration, or necessary for giving it full effect.

(2) The Minister may refuse to make a decision under this Part until the prescribed fee is paid.

(3) Any Order in Council made under subsection (1) may—

• (a) prescribe the method of payment of a fee; and

• (b) authorise the Minister to refund or waive, in whole or in part and on any prescribed conditions, payment of a fee in relation to any person or class of persons.

(4) Any fee or amount payable under this Part is recoverable in any court of competent jurisdiction as a debt due to the Crown.

(1) The Ministry must, not later than 5 years after the commencement of this section,—

• (a) review the operation of this Part since the commencement of this section; and

• (b) prepare a report on the review for the Minister.

(2) The report on the review must include recommendations to the Minister on whether any amendments to the Act concerning the matters dealt with in this Part are necessary or desirable.

(3) As soon as practicable after receiving the report, the Minister must present a copy of that report to the House of Representatives.

The enactment specified in the Schedule Schedule 1 is amended in the manner indicated in that schedule.