Financial Services Disputes
The ability to have a dispute arbitrated or mediated by a third party who has specialist knowledge and experience within the financial services sector is increasingly being viewed as essential to ensuring a credible dispute resolution process.
NZDRC is also often called on to deliver expert determinations for finance and tax disputes. In 2019, the Chartered Accountants Australia and New Zealand (CAANZ) announced that it would no longer provide a service nominating independent experts and identified NZDRC as an alternative provider for contractual dispute resolution, recognising NZDRC’s experience in this area.
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Overview of services
NZDRC is well placed to ensure the most robust, professional and sector specific service is available for parties operating within the financial services sector.
Process options
With a range of processes available, there will be one to best suit your needs, whatever the nature of your dispute.
FAQ
Explore our FAQ section for quick insights and to find answers to common questions.
Overview of services
NZDRC has arbitrators, mediators, and experts working with us who have a significant level of experience in dealing with a wide range of issues which commonly present in financial services disputes. This means NZDRC is well placed to ensure the most robust, professional, and sector-specific service is available for parties operating within the financial services sector.
Additionally, NZDRC’s processes are specifically designed to ensure the most proportionate level of response is adopted, providing parties with a fair, prompt, and cost-effective means of resolving their dispute. Our processes allow commercial parties to resolve their disputes in a private forum, maintaining confidentiality.
Process options
The three most used processes for financial services disputes are arbitration, mediation, and expert determination.
Arbitration
NZDRC provides both ad hoc arbitration services as well as institutional arbitration under its Arbitration Rules. Both options provide parties with access to arbitration on either a fixed or capped fee basis, providing parties with much-needed certainty in terms of cost.
The NZDRC Arbitration Rules are intended to give parties the widest choice and capacity to adopt fully administered procedures that are fair, prompt and cost-effective, and which provide a proportionate response to the amounts in dispute and the complexity of the issues involved. A summary procedure (early dismissal of claims and defences) is also available under the NZDRC Rules providing parties to financial disputes with access to an early resolution in appropriate cases.
NZDRC’s ad hoc arbitration service provides parties with the flexibility to craft their own process while still giving them access to NZDRC’s institutional oversight, assistance, and support. Importantly, the service also provides certainty in terms of a capped arbitration fee.
When entering into a contract, we recommend that parties adopt one of our model clauses to ensure they can access these services should a dispute arise at a later date. Model clauses for both NZDRC ad hoc arbitration and NZDRC institutional arbitration may be found here.
Mediation
NZDRC’s commercial mediation offering provides commercial parties with a professional, fully administered, and credible mediation process. For commercial parties who are looking to craft a more flexible solution to their dispute, this option empowers parties to develop and explore mutually beneficial settlement options with the assistance of an independent third-party mediator who brings with them significant industry-specific experience.
A model clause for mediation may be found here.
Expert Determination
Expert determination has become a popular method of resolving disputes in several industries involving qualitative or quantitative issues, or issues that are of a specific technical nature or specialised kind, because it is generally quick, inexpensive, informal and confidential.
The principal attraction of expert determination is that it can provide a binding (or non-binding) determination without involving many of the formalities that can beset arbitration and litigation. It also has the advantage of assisting in preserving business relationships where strictly adversarial proceedings may not.
A model clause for expert determination may be found here.
FAQ
Find quick insights and helpful information on a variety of topics related to financial services disputes
Why choose NZDRC?
NZDRC offers fully administered dispute resolution processes.
We operate as a private registry, providing one point of reference for parties and their representatives, assisting with the appointment of dispute resolution practitioners, and the management and administration of private dispute resolution processes across a wide variety of sectors and industries in New Zealand.
Our services include a dedicated registrar and a peer-review process. These allow for better management of the case and improvements in the quality of the decision.
How do I know what process is right for me?
The right process will depend on the context of your particular case and any agreement between the parties as to their preferred process.
If the dispute relates to a legal right or a transactional matter, and the parties simply can’t agree on what should happen or what value should be applied, then it may be appropriate for the dispute to be heard through a determinative process, such as arbitration or expert determination.
Some disputes may concern ongoing relationships, or matters which require subjective outcomes. In these cases, mediation may be more appropriate as it is a more consensual process.
How enforceable are the outcomes of private dispute resolution processes?
Arbitration awards are enforceable both domestically under the Arbitration Act 1996 and internationally under the New York Convention. Enforcement may only be refused in very rare cases making arbitration a popular means of obtaining final resolution of a dispute. Mediated settlement agreements and expert determinations are enforceable as a matter of contract.
How is confidentiality maintained throughout the process?
Confidentiality in private dispute resolution processes such as arbitration and mediation is maintained through a combination of statutory provisions, contractual obligations, and NZDRC’s institutional rules.
Hearings and mediations are conducted in private, with no public access to the proceedings or the evidence and submissions presented.
While absolute confidentiality is never guaranteed, measures taken by NZDRC aim to create a robust framework for maintaining confidentiality in line with party expectations for private dispute resolution.
Take the first step towards resolving your financial services dispute today
NZDRC has significant knowledge and experience, which has been built up over the course of more than 30 years during which we have delivered consistent, professional and credible private dispute resolution services. Contact us today to find out more about how we can help you or your clients.
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