2024-25 financial services reforms

About the reforms package

In January 2024, the Minister of Commerce and Consumer Affairs announced plans to reform aspects of New Zealand’s financial services regulation.

These reforms aim to streamline the financial services regulatory landscape and remove unnecessary compliance costs currently imposed on financial services. The package of reforms will improve outcomes for consumers by ensuring New Zealanders can confidently access the financial products and services they need in a way that is safe.

Together, these reforms aim to provide regulatory clarity, protect vulnerable consumers and grow the economy.

Introduction of bills

The 3 bills have been introduced to the House of Representatives and are currently passing through the parliamentary process.

Read the cabinet papers and associated minutes

Read the press release

Freeing up access to finance for Kiwi households(external link) — beehive.govt.nz

Read the Bills

Credit Contracts and Consumer Finance Amendment Bill(external link) — New Zealand Legislation

Financial Markets Conduct Amendment Bill(external link) — New Zealand Legislation

Financial Service Providers (Registration and Dispute Resolution) Amendment Bill(external link) — New Zealand Legislation

Previous Cabinet decisions

On 2 September 2024, Cabinet made a number of policy decisions to reform New Zealand’s financial services sector.

Improving access to finance for Kiwis(external link) — Beehive.govt.nz

The Cabinet paper and accompanying appendices can be found below:

Phase 1

Phase 1 of the reforms involved:

Regulations under the Credit Contracts and Consumer Finance Act 2003 (CCCFA) to fully exempt:
- voluntary targeted rates schemes provided by local authorities from the CCCFA – such as loans to install insulation or heat pumps – without the need to pay additional compliance costs. This exemption took effect on 25 April 2024.
- entities whose primary business is non-financial goods and services, such as certain car dealers, from duplicative CCCFA reporting requirements. This exemption took effect on 25 April 2024.

Credit Contracts and Consumer Finance Amendment Regulations 2024(external link) — New Zealand Legislation

Regulations under the CCCFA commencing 31 July 2024 to:
- revoke redundant regulations relating to COVID-19
- revoke prescriptive affordability requirements in the Credit Contracts and Consumer Finance Regulations 2004 that were intended to clarify what constitutes reasonable inquires to assess whether a borrower can make the repayments for a prospective loan without suffering substantial hardship. 
Amending the Responsible Lending Code to support lenders to responsibly ensure lending is affordable once the affordability regulations have been revoked.
Regulations to align certain jurisdictional rules for the four approved financial dispute resolution schemes.

Public submissions on amending the Responsible Lending Code closed on 10 June 2024.

Financial Service Providers (Rules for Approved Dispute Resolution Schemes) Regulations 2024(external link) — New Zealand Legislation

Phase 2

Phase 2 reviewed various pieces of financial services legislation, including:

Transfering regulatory responsibility for the CCCFA from the Commerce Commission to the Financial Markets Authority (FMA).
Streamlining obligations imposed on financial institutions under the Financial Markets (Conduct of Institutions) Amendment Act 2022, alongside reviewing the conduct licensing framework in the Financial Markets Conduct Act 2013 to improve clarity, remove unnecessary compliance costs and improve outcomes for consumers.
Reviewing the CCCFA to:
- assess the effectiveness of the CCCFA’s high-cost credit provisions and consider any reforms to ensure those provisions meet their objectives 
- address potential areas of under-performance, including the liability settings and disclosure obligations
Reviewing the accessibility and effectiveness of the financial dispute resolution system.

Previous consultation

Consultation closed – Fit for purpose financial services reform

MBIE publicly consulted on amendments to the CCCFA, including changes to the high-cost credit provisions, the Financial Markets (Conduct of Institutions) Act (CoFI) and financial markets conduct licensing, and financial dispute resolution. Submissions received informed advice to the Minister of Commerce and Consumer Affairs on reforms.

Public submissions closed on 19 June 2024.

Fit for purpose financial services reform

You can find the submissions here:

Financial services conduct regulation submissions

Financial dispute resolution submissions

Consumer credit legislation submissions

Consultation closed – Proposed changes to the Responsible Lending Code

MBIE also consulted on changes to the Responsible Lending Code, which provide guidance following the revocation of the CCCFA affordability regulations. These changes to the Code were published on 2 July 2024 and came into force on 31 July 2024.

Proposed changes to the Responsible Lending Code

Responsible lending code - July 2024 [PDF, 1.1 MB]