FSCL Passes Independent Review, Targets Gaps in Public Awareness
The Financial Services Complaints Limited (FSCL), New Zealand’s approved dispute resolution scheme, has been assessed as compliant and functional across key governance principles in its latest five-year independent review. The report, prepared by reviewer Nanette Moreau Hammond, confirmed that the FSCL meets its obligations under the Financial Service Providers (Registration and Dispute Resolution) Act 2008, offering impartial and accessible complaint resolution services.
Stakeholders, including consumers and financial providers, generally viewed the scheme as timely, approachable, and well-reasoned in handling complaints. However, the review identified limited public awareness as an ongoing issue, with a significant portion of consumers remaining unaware of their right to use external dispute resolution schemes.
FSCL chief executive officer Susan Taylor acknowledged the issue, stating, “The board has accepted all the recommendations, and we are already implementing them. One of the challenges highlighted is that 20% of financial services consumers are unaware of any dispute resolution options available to them. We are actively working on increasing consumer awareness of our service and reaching more consumers, so they know help is available when they have a problem with their financial service provider.”
To address these gaps, the review recommended that the FSCL conduct routine checks of its members’ websites to verify proper disclosure of complaint procedures and undertake mystery shopper assessments to gauge frontline staff knowledge of dispute escalation protocols. The FSCL is also expected to expand its reporting to better inform providers and regulators of common complaint types and potential systemic issues.
The review proposed that the FSCL explore the use of AI tools to identify trends in complaint data and flag potential compliance breaches. The FSCL confirmed it is assessing technological solutions to complement its current manual review processes. Additional community education efforts and clearer online content are also planned.
Looking ahead, the review acknowledged that succession planning at the leadership level may become a future consideration. The FSCL will begin reporting against new key performance indicators in the 2025–2026 year, including consumer satisfaction and resolution timeliness. The next formal review is expected in 2030.
