Dispute resolution scheme Financial Service Complaints Limited has marked Money Week 2015 by releasing the first in a series of new factsheets designed to help improve financial capability.
Chief Executive Officer Susan Taylor said FSCL’s ‘Fiscal Tips’ factsheets aimed to help consumers – and financial service providers – better understand some of the issues behind the complaints it receives. The first focuses on consumers’ rights around KiwiSaver withdrawals.
“Some of the complaints we receive show that consumers do not understand KiwiSaver’s purpose, that is, to help people save for their retirement. Generally speaking, consumers cannot withdraw their KiwiSaver savings until they reach retirement age.
“This factsheet covers the specific and limited circumstances in which people can withdraw their funds early and what to do if they think they have had an application for withdrawal unfairly declined,” said Ms Taylor.
Ms Taylor said it was important for New Zealanders to plan for their retirement and KiwiSaver was a key part of that mix.
She said the Commission for Financial Capability and Financial Market Authority’s recent report on New Zealander’s plans for their KiwiSaver as they approached retirement illustrated the role financial advisers play in retirement planning.
“It is important consumers understand that there are different types of financial advisers and that this affects the kind of advice they could give about financial services, such as investments, term deposits and insurance.”
FSCL’s next Fiscal Tips factsheet will explains the different types of financial advisers in New Zealand, the type of financial service they can each provide and legal and professional requirements they must meet to operate.
Ms Taylor said FSCL was a strong supporter of Money Week and the work undertaken by the Commission for Financial Capability and other supporting organisations to get New Zealanders talking about money and build financial capability.
“By helping people get a better handle on their financial situation and understand their rights as financial service consumers, we can lift confidence in the sector – for the benefit of all New Zealanders.”
Fiscal Tips on KiwiSaver is available at www.fscl.org.nz
The other dispute resolution schemes in the financial services industry are the Banking Ombudsman, the Insurance and Savings Ombudsman and Financial Disputes Resolution. For more information about the financial services disputes resolution regime visit www.consumeraffairs.govt.nz/for-consumers/how-to-complain/financial-service-providers-disputes-resolution