NZ Ombudsman rejects increased compensation limit 09 June 2015 4:44PM Banking Day staff New Zealand's Banking Ombudsman Scheme has rejected the recommendations from a formal review that it increase its compensation limits from NZ$200,000. In its response paper the BOS said increasing the claim limit would put the scheme "out of step" with New Zealand's other financial dispute resolution schemes and "ideally schemes should synchronise their increases." The board noted that the Government was currently looking at financial limits for approved dispute resolution schemes as part of its broader review of the Financial Advisors Act and the Financial Service Providers (Registration and Dispute Resolution) Act. "In light of this, and differing views about the details of any change, the board decided to keep the financial limit at $200,000 and enable the issue to be raised in the context of the wider review," the paper said. The BOS also rejected submissions that it formalise its role in investigating industry-wide problems. The BOS has decided to proceed with most of the other recommendations, including extending the deadline for receiving complaints, increasing its ability to decline complaints, and requiring banks to get the scheme's consent to take legal proceedings or debt recovery actions while a complaint is under consideration. The new terms of reference are expected to be implemented around the start of 2016, with a final consultation process and ministerial sign-off yet to come.