New Zealand Dispute Resolution Announcement

Dear Customers and Visitors of www.GDMFX.com,
 

With regards to recent publications in popular forums and websites regarding GDMFX and its membership in the FDRS of New Zealand, the company would like to answer its critics with facts in order to bring more clarity into the situation. The company has been informed that certain individuals are spreading half-truths online in a matter which is slanderous and aimed at damaging the company's reputation.

Those Half-truths have been spread by certain selected claims copied and pasted from “parts” of email correspondence with the Financial Disputes Resolution service of New Zealand (FDRS). These have misrepresented the company and the FDRS.

These claims have then been posted as facts when this is untrue.

 

GDMFX would like to state the following:
 

  • The company has been a paid-up member of the FDRS since 11 August 2012 when the laws of New Zealand required GDMFX to be a member of a dispute resolution service.

  • The company has remained a member of the FDRS until 30 November 2017;

  • The FDRS dealt with complaints from customers of GDMFX during this period until a final complaint that had been  made and was completed in mid-August 2017;

  • The first notification received by GDMFX from the FDRS that they would no longer deal with complaints from clients was in late October 2017.

  • The notification from FDRS was made to the company on the basis of a  query – not a complaint -  made by an individual who identified himself with the nickname “Cool” on 27 October 2017;

  • “Cool” then made statements that can only be described as misleading about GDMFX on blog websites and public forums;

  • The notification from the FDRS to the company was on the basis that the FDRS could only deal with a complaint/complainant if the  financial service was provided to a resident of New Zealand or it generated an associated financial activity in New Zealand

  • The company had been in discussion with FDRS regarding this view from late  July 2017 and was waiting for a reply from them;

  • The discussions were based on the interpretation of Rule 6(1) of the Financial Disputes Resolution Service.

  • Rule 6(1) of the Financial Disputes Resolution service sets out what constitutes a complaint that is to be covered by the FDR i.e. a complaint is covered if the complaint is about “the provision of a financial service in New Zealand”

  • Because it is the goal of GDMFX  to provide a transparent service for their clients and to avoid any potential confusion the application of Rule 6(1)  was referred for a legal opinion in September 2017 as this particular  rule had been interpreted in different ways taking into account the provisions of the  New Zealand Financial Advisers Act 2008 and the Financial Services Providers (Registration and Dispute Resolution ) Act 2008 (FSPR) and its interaction with the requirements of the FDR Rules;

  • Rule 6(1) could be interpreted to mean two things either

    • (1) Providing a financial service to clients in New Zealand; or

    • (2) Providing a financial service in New Zealand to any clients (either in New Zealand or overseas)

  •  Initially it was GDMFX’s view that the second interpretation of Rule 6(1) could be viewed as the correct interpretation;

  • Following the FDRS notification to the company on 27 October 2017 the company, on the basis of further legal opinion, decided that they had no option but to agree with the FDRS' view and that the first interpretation of Rule 6(1) is more than likely the correct view and that for the FDR to have coverage of a dispute the financial service in question needs to be received by a person in New Zealand.

  • The company was first notified that the FDRS would take this stance following the query made by “Cool” on 27 October 2017 when this was forwarded to the company by the FDRS.

  • There had been no “official” confirmation prior to that date.

  • The company changed its website accordingly and as at 30 November 2017 decided that membership of the FDRS is no longer of value to clients

  • Any dispute can now be lodged firstly with the company. If the client is unhappy with the result of his/her interaction with the company then the complaint can be forwarded  - in the interim - to a New Zealand Law Firm – at no cost to the client – which will further investigate. The Customer Support department of GDMFX can provide the contact details upon request.

  • If the client is dissatisfied he/she has recourse to the New Zealand Judicial system.

  • The company is now looking to obtain the services of a mediation company in New Zealand for the purposes of dealing with client complaints.