Submissions on CCCFA open

The Ministry of Business, Innovation and Employment (MBIE) is seeking feedback on options for streamlining how banks and other financial service providers are regulated.
“We are inviting submissions on a package of discussion documents that aim to improve how financial services are provided and how disputes are resolved,” says Andrew Hume, general manager of small business in MBIE’s commerce and consumer policy branch.
The consultation is taking place on possible changes to the Credit Contracts and Consumer Finance Act (CCCFA).
It will also focus on systems and controls financial institutions need to have to support how they provide services to consumers, how the Financial Markets Authority (FMA) regulates the market, and opportunities to improve the accessibility and effectiveness of the financial dispute resolution system.
“I encourage anyone interested in how providers operate to have a say in this consultation,” adds Hume. “Your feedback will support MBIE to develop regulatory change that is fit for purpose, effective and serves the best interest of New Zealanders.”
The three discussion documents have been published on MBIE’s website. Submitters are welcome to address any sections in the consultation and do not have to complete all sections.
Submissions close on June 19. Further information is available on MBIE’s website.
Details about proposals
This consultation package is part of phase two of the government’s financial services reforms, which were announced on April 21.
The CCCFA is a key piece of legislation. It regulates credit available to consumers for personal, domestic or household purposes. Its primary purpose is to protect consumers.
With the transfer of responsibility for regulating the CCCFA from the Commerce Commission to the FMA, MBIE is consulting on options to give greater powers to the FMA to carry out this role effectively.
The government is also consulting on changes to the way lending is managed by addressing disclosure obligations, and by reviewing provisions for high-cost consumer credit contracts to monitor if they have been working as intended to protect vulnerable people or if more needs to be done to prevent hardship.
The Conduct of Financial Institutions Act (CoFI) amends the FMC Act to introduce a regime regulating the conduct of banks, insurers and non-bank deposit takers, which are collectively known as financial institutions, from March 31, 2025.
The government is exploring options to simplify requirements introduced under the forthcoming CoFI regime, reform conduct licensing requirements, improve how the Reserve Bank and FMA work together as regulators, and enhance the regulatory tools available to the FMA.
The government is proposing to maintain the current timeframe for when financial institutions are required to implement fair-conduct programmes under the CoFI, and institutions are advised to continue preparing these for March 31, 2025.
There are four approved financial dispute resolution schemes – the Banking Ombudsman, Insurance and Financial Services Ombudsman, the Financial Services Complaints Ltd and the Financial Dispute Resolution Service.
The Insurance and Financial Services Ombudsman and Financial Services Complaints Ltd have announced an intention to merge schemes.
All the schemes are private entities that investigate consumer and small business disputes with financial service providers once a complaint has been made through the provider’s own internal process. All financial service providers with retail clients are required to belong to a dispute-resolution scheme.
The government has aligned rules for the separate schemes in key areas and MBIE is interested in whether further measures could be taken to support effective use of dispute resolution.
The Financial Service Providers (Rules for Approved Dispute Resolution Schemes) Regulations are due to commence on July 18 this year. They will align the schemes’ rules to set consistent financial compensation limits and timeframes for making complaints.