About FDRS

FDRS was established to help financial service providers and their customers resolve disputes.

FDRS is an independent dispute resolution scheme for consumers and financial service providers to use when they are unable to resolve a dispute.

Financial Dispute Resolution Service (FDRS) was established by the Government as the reserve scheme to provide greater accountability and transparency in the financial sector. The reserve scheme was disestablished by the government 30 June 2014 and replaced by FDRS, an approved scheme under the Financial Service Providers (Registration and Dispute Resolution) Act 2010. Jurisdiction of the reserve scheme is conferred on reserve scheme members transferring to the approved scheme. The approved scheme is owned and operated by FairWay Resolution Limited (FairWay) and continues to be known as Financial Dispute Resolution Service (FDRS).

Financial Service Providers (FSPs) giving services and advice to the public must be on the Financial Service Providers Register, operated by the Companies Office. One of the requirements of registration is membership of an external dispute resolution scheme.

A few financial service and advice providers will not have to join a dispute resolution scheme however. These are:

  • FSPs that only deal with wholesale clients

  • financial advisers who are employed by a registered FSP; and

  • financial advisers who are nominated representatives of a Qualifying Financial Entity (QFE)

FDRS uses a range of dispute resolution techniques to help with resolving disputes, from simple discussion to more formal conciliation. If in the end the parties to a dispute cannot reach agreement, FDRS will issue a final decision. If the decision is accepted by the parties making the complaint, the decision becomes binding on the organisation.

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Who is FairWay?

FDRS is operated by FairWay Resolution Limited (FairWay).

FairWay is an independent, Crown-owned company providing specialist conflict management and dispute resolution services. FairWay employs around 100 staff and contracts with over 150 specialist reviewers and dispute resolution practitioners throughout New Zealand.

FairWay handles over 12,000 disputes each year — of all kinds and levels of complexity, including medical, insurance, financial services, telecommunications, family, local government, and building and construction disputes. Our dispute resolution experience underpins our conflict management expertise in all parts of the conflict management cycle — prevention, management, resolution and analysis of conflict..

For more information, please visit the FairWay website.

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