New licensing powers will expand supervision of lenders
New Zealand’s Financial Markets Authority has welcomed the passage of legislation that will hand it oversight of consumer lending, a shift set to reshape how lenders are monitored across the country.
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – confirmed its support for the third reading of the Credit Contracts and Consumer Finance Amendment Bill, which locks in 1 July 2026 as the date for the transfer of regulatory responsibility for the Credit Contracts and Consumer Finance Act 2003 (CCCFA).
The bill passed its third reading on 30 May 2026 and now proceeds to the Governor-General for Royal Assent.
FMA executive director of licensing and conduct supervision Clare Bolingford described the shift as more than a bureaucratic handover.
“The transfer of responsibility for the CCCFA from the Commerce Commission to the FMA is an important step towards a more streamlined regulatory environment for the financial services sector, offering greater clarity and efficiency for both industry and consumers,” she said.
“This isn’t just a change in oversight – it’s a move towards a more connected and coordinated approach to regulating financial market conduct. By aligning credit regulation with broader financial services, we’re creating a framework that better supports responsible lending and consumer protection.”
Regulators coordinate transition
Bolingford said the new licensing regime would expand the FMA’s supervisory toolkit.
“Introducing a licensing regime for lenders will give the FMA more ways to monitor and supervise lending activity and will provide a wider set of regulatory tools to support effective oversight,” she said.
The transfer follows a process that began in March 2024, when Cabinet approved the move. The bill was introduced to Parliament on 31 March 2025 and received its second reading on 14 May 2026.
The Commerce Commission also welcomed the bill’s passage. Acting general manager Sarah Bartlett said the commission had been working closely with the FMA since the initial announcement to ensure a smooth and well-governed transition, with strong protections in place for data integrity and privacy.
“The passage of the bill provides clarity for industry and consumers, and we are focused on supporting a seamless handover of responsibilities to the FMA,” Bartlett said.
Bolingford echoed the collaborative approach, noting that experienced credit staff would move across as part of the transition.
“As we approach 1 July, the FMA and Commerce Commission continue to work together to ensure a seamless transition, including the transfer of experienced credit staff from the Commerce Commission to the FMA. Their knowledge and relationships will help maintain momentum and confidence throughout the transition,” she said.
The FMA also signalled it would not hesitate to act against misconduct.
“We will use our full range of regulatory and enforcement powers where we find misconduct that has – or is likely to – harm consumers,” Bolingford said.
Commerce and consumer affairs minister Cameron Brewer said the reforms would deliver simpler, clearer, and more workable lending laws for New Zealanders.
Until 1 July, lenders and consumers are advised to continue engaging with the Commerce Commission on CCCFA matters.
