Consumer financial dispute resolution in a time of increased regulatory scrutiny

In both the Asia-Pacific region and globally, several factors, including the complexity of financial products and the importance of investment for wealth management and pension purposes, have led to increased regulatory scrutiny over consumer financial dispute resolution mechanisms. This reflects the growing need to strengthen consumer protection and achieve greater financial inclusion and also the widening of the regulatory net generally. Drawing on previously published research, this chapter outlines dispute resolution mechanisms in the ASEAN 5 countries, examines reforms in Australia and contrasts those reforms with the position in New Zealand. In particular, the chapter focuses on the drivers for a single-body external dispute resolution scheme in Australia. This chapter contains four sections. Section 1 outlines international principles in respect of external consumer financial dispute resolution mechanisms. Section 2 provides an overview of external disputes resolution in the ASEAN 5 countries. Section 3 sets out the position in each of the ASEAN 5 countries by reference to whether they adopt a multiple-body mechanism or a single-body mechanism. Section 4 compares Australia and New Zealand, examining the reforms in Australia and the ongoing reform debate in New Zealand.