chapter 5 - meeting customers' need Flashcards
what form of legislation sets out the minimum standards required of banks to ensure fair outcomes for customers
The code of Banking Practise (CoBP)
what form of legislation places requirements on lenders to ensure customers are adequately informed when borrowing money, are able to afford the loan and are treated fairly if they fall into financial difficulty or hardship
the Credit Contract and Consumer Finance Act 2019 (CCCFA)
twhat does FSLAA mean
the Financial Services Legislation Amendment Act 2019
What legislation aims to simplify advice, making it more accessible, whilst rasing standards across the financial services industry
FSLAA 2019
In terms of financial advice disclosure what 6 things must be disclosed
- fees
- conflicts of interest
- compliant handling and dispute resolution
- duties information
-identifying information - availability of information
in terms of nature and scope disclosure what 6 things must be disclosed
- nature and scope of the advice
- reliability history
- identfying information
- fees and expenses
conflicts of interets - availabilty of information
who can give financial advice (2)
- Financial Advisor (FA)
- ## Nominated Representative (NR) on behalf of a Financial Advice Provider (FAP) who is the license holder
The financial service Council NZ stipulates the info around the complaints handling process to be provided……
as soon as practicable after a complaint about the financial advice or financial advice service is received
when must the Financial advice provider (FAP) or person engaged to give financial advice on their behalf provide an overview of the FAP’s complaints handling process, including info regarding the dispute resolution scheme
the is complaint is not resolved in 2 working days
what are the 3 steps towards working toward a complaints solution
- ask the customer what they would like to happen
- explain the banks position
- giving alternative solutions if you can
all banks must have an internal dispute resolution process in place . Who issued the Code of Banking Practise for its memeber banks in May 2018
The New Zealand Bankers association (NZBA)
All financial service providers who offer financial services must belong to an independent dispute resoution scheme. Which is a commone free on ein NZ
The Banking Ombudsman Scheme (BOS)
The Banking Ombudsman Scheme can look into most but NOT all types of banking complaints and can also give information BUT NOT advice, about banking realted matters. The BOS can provide info on….. (3)
- banking industry practises and procedures
- how to make a complaint
banks legal obligations and industry codes
The Banking Ombudsman Scheme (BOS) can not consider complaints …… (6)
- about a banks comercial judgement
- about a banks interest rate policies or the size of its standard fees
- claims involving direct financial loss above $350k
- matters that happened a long time ago
- complaints already resolved by the bank
- complaint better dealt with by another dispute resolution provider ir life insurance
The code of banking practice applies to ….
All banks that are members of the Nz bankers association
