Consumer credit regulation moves from the Commerce Commission to the FMA, reshaping lender oversight
Mortgage lenders and advisers face a sharper regulatory focus on fraud and commission conflicts, starting today. The Financial Markets Authority (FMA) has taken over oversight of the Credit Contracts and Consumer Finance Act (CCCFA) from the Commerce Commission, becoming New Zealand's single conduct regulator for lending, insurance, investment, and advice.
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The FMA has flagged three initial priority areas that carry direct relevance for mortgage advisers and brokers: lending practices, with particular attention to suitability and affordability assessments; remuneration structures and how conflicts of interest are managed; and complaints-handling processes.
The regulator has already put those priorities into practice: its newly released Financial Conduct Report for 2026/27 confirms active investigations into alleged mortgage fraud, alongside a sharper focus on conflicted remuneration across the lending sector.
One regulator, one rulebook
The change is enabled by the Credit Contracts and Consumer Finance Amendment Act 2026 and is designed to reduce duplication between regulators while giving lenders a single, more consistent set of expectations to work within. In practice, the shift is designed to be seamless for existing lenders: those already certified by the Commerce Commission — or exempt from certification — are automatically deemed to hold an FMA licence from today, with no application or fee required.
Clare Bolingford (pictured), the FMA's executive director licensing and conduct supervision, said bringing credit oversight under the same conduct framework as banking, insurance, and investment should let lenders work to one consistent standard, rather than juggling separate expectations from two regulators.
"Consumer credit plays an important role in helping New Zealanders manage their finances and access funds when needed, from funding major purchases through to meeting everyday living costs," Bolingford said in a media release.
Despite that harder edge on fraud and conflicts, she struck a collaborative note on the transition itself.
"We're looking forward to working constructively together to ensure the credit sector in New Zealand is working well for everyone," Bolingford said.
Advisers and lenders alike should expect ongoing guidance from the FMA as it builds on the practices already established under the Commerce Commission's regime, rather than an abrupt change in day-to-day compliance expectations.
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