About the transfer
What is happening?
Regulatory responsibility for the Credit Contracts and Consumer Finance Act (CCCFA) is being transferred from the Commerce Commission to the FMA. The financial service of being a creditor under a credit contract will come under the FMA's Financial Markets Conduct Act remit.
When will the transfer happen?
The exact date is still to be determined. The Finance and Expenditure Select Committee reported back to the House on 20 October 2025 recommending that the Credit Contracts and Consumer Finance Amendment Bill be passed. There are a few more steps in the Parliamentary process before the CCCFA Amendment Bill becomes law. The Commission and FMA are continuing to work collaboratively to ensure a smooth transition.
Why is consumer credit regulation moving to the FMA?
The transfer simplifies and streamlines the regime by establishing a single conduct regulator for financial products and services, reducing duplication. It also enables stronger consumer protections through enhanced conduct regulation tools.
How are the Commerce Commission and the FMA preparing for the transfer?
The Commission and FMA have established a joint CCCFA Transfer Project with dedicated workstreams covering the key aspects of the transfer.
We've put in place robust governance and security protocols for data transfer, induction plans for staff transferring from the Commerce Commission and a CCCFA implementation programme for existing FMA staff and to support a transition-ready consumer credit regulatory strategy.
Experienced credit regulation professionals from the Commerce Commission are joining the FMA, bringing a wealth of knowledge to support the sector. Once the transfer takes place, the FMA will have a dedicated frontline credit team as well as credit staff from the Commission positioned in existing FMA teams who will be dealing with credit matters.
Where do I go for advice and support or to answer questions during this transition period?
Credit regulation will continue to sit with the Commerce Commission until the transfer takes place. The Commerce Commission has a dedicated email address for questions about the transfer.
You'll hear from both the Commerce Commission and the FMA as the transfer gets closer to keep you updated on the process.
On the transfer date the FMA will take over responsibility for credit regulation, and all communications will be with the FMA.
About the FMA
What does the FMA do?
The FMA regulates the conduct of financial services providers across a range of sectors. When we talk about conduct, we mean how providers behave and interact with customers. Good conduct builds trust and confidence in the financial system, and our job is to ensure providers treat customers fairly and operate with integrity.
Why does conduct regulation matter?
It helps create financial markets that are fair, efficient, and transparent which is FMA's main statutory objective. Our approach focuses on improving outcomes for businesses, consumers, and investors. Regulation isn't just about rules, it's about what those rules achieve for people and markets.
What else do you regulate?
Firms we currently licence include Banks, non-bank deposit takers, and insurers; KiwiSaver and fund managers; Derivative issuers; Auditors; Equity crowdfunding platforms; Financial advice providers; NZX and other licensed market operators
How does the FMA approach regulation?
We take a risk-based approach, focusing where we can make the biggest difference. We believe regulation works best when built on strong relationships, so we work closely with industry and consumer groups to understand risks, opportunities, and customer experiences.
What do I do if I see any concerning behaviour?
In the lead up to the transfer, and once the transfer has taken place, the FMA and Commerce Commission will work together to ensure that any questions, comments or complaints reach the right regulator. You can make a complaint to the FMA via the website. We'll keep you updated as matters are progressed and/or closed.
About Licensing
What's changing?
Right now, consumer lenders and mobile traders must be certified by the Commerce Commission in order to offer consumer credit, unless exempt. As part of the reform, the certification regime is ending and is being replaced with FMA's licensing regime for consumer lenders. Mobile traders will not require a licence unless they undertake lending or credit sales.
The licensing regime gives the FMA a wide range of ways to engage with lenders. This will feel different for lenders who haven't been regulated by us before under a market services licence.
When regulatory responsibility transfers to the FMA, all consumer lenders certified at that date (or exempt from certification on the basis that they are licensed/authorised by the FMA or Reserve Bank) will automatically receive a FMA market services licence for the service of acting as a creditor under a consumer credit contract.
What's the difference between licensing and certification?
Certification focuses on individuals. Directors and senior managers need to be fit and proper persons to hold their respective positions. Licensing also assesses the fitness and propriety of directors and managers, but it also looks at the organisation as a whole. Licensing adds two additional criteria:
Capability of effectively providing the service - We look at what is good practice for a provider of the licensed service. This includes having clear, documented processes that are easy to follow and demonstrate compliance.
Not likely to contravene - We assess whether there are any signs the applicant might breach duties or obligations. This could include missing key policies, inadequate processes, or unresolved adverse conduct.
How do I get a licence from the FMA?
If you are currently certified (or exempt from certification because you are licensed or authorised by the FMA or Reserve Bank), at the date of transfer you will be deemed to hold an FMA licence for the consumer credit service. The FSPR will be updated automatically, and you will not need to apply, pay a fee or provide any licensing information. We are doing this to ensure continuity and minimise disruption.
How long does a licence last?
FMA licences are generally open-ended, but conditions may set a time frame.
What do I need to do to be ready for licensing?
Plan ahead: Noting the existing due diligence obligations at section 59B of the CCCFA, we expect that lenders will already have compliance frameworks and documentation in place. However, if you don't have written processes, it's good to start documenting those, and your compliance and governance approach now. Even a simple overview is a good start.
What does licensing look like?
Once you are licensed there will also be ongoing obligations set by legislation and through licence conditions. We're not planning to impose licence conditions immediately - we'll consult with you first on any proposed conditions.
What kind of conditions are you likely to consider?
You can see the standard conditions for other licences here.
What other obligations are there?
You need to let us know if you change directors or senior managers (as you did with the Commerce Commission under the certification regime). In addition, under s412 of the Financial Markets Conduct Act, you will be required to report to the FMA if you have contravened, may have contravened or are likely to contravene a market services licensee obligation in a material respect, or if you have a material change of circumstances in relation to the licence.
How do I let you know about changes in directors or senior managers?
You'll be able to submit online via the MyFMA online services portal. There is no fee for this.
What's a material change?
The Financial Markets Conduct Act defines a material change as, "a change that adversely affected your capacity to perform the licensed market service in an effective manner" or "a change that means that the licensing requirements (capability, fit and proper and not likely to contravene) are not or are no longer satisfied".
Is self-reporting a new requirement?
While it's not currently mandatory, the Commerce Commission encourages self-reporting of potential breaches under the CCCFA and has produced guidance for how to do so.
Once the transfer has taken effect, lenders will have an obligation (under s412 of the Financial Markets Conduct Act) to report certain matters to the FMA. The FMA is currently considering options in relation to self-reporting guidance.
What if I'm not sure whether to report something or not?
Once the FMA has taken over regulatory responsibility we encourage you to contact us if you are unsure about whether to report something or not. We aim to be practical, we know most providers want to do the right thing. We'll work with you to determine the best approach.
Will the introduction of licence conditions for the consumer credit licence be aligned with single licensing?
Standard conditions for the FMA licence for the service of acting as a creditor under a consumer credit contract will be introduced after the transfer and in line with the move to Single Licensing. This avoids introducing one set of standard conditions at transfer and then modifying them later.
What is single licensing?
The Financial Markets Conduct Amendment Bill, currently before Parliament, will require one licence for firms offering multiple market services under the Financial Markets Conduct Act 2013. Existing licences will be automatically consolidated into a single licence covering all market services a firm is authorised to provide.
For lenders offering only one service, the impact will be small. We'll consult on proposed conditions.
What if I am a mobile trader?
The service of being a mobile trader will not require a FMA market service licence.
Mobile traders that are treated as creditors under consumer credit contracts under s16A of the CCCFA will require a FMA licence for the service of acting as a creditor under a consumer credit contract. If you are a mobile trader that is currently certified by the Commission for the service of being a creditor under a consumer credit contract, at the transfer date you will be deemed to hold an FMA licence for the consumer credit service.
If you are currently certified by the Commission for the service of being a mobile trader at the transfer date, your certification for that service will cease and you will not be deemed to hold a FMA licence.
What is happening to covered bond/securitisation arrangements and non-financial business interim creditors?
Currently some lenders are exempt from certification by the Credit Contracts and Consumer Finance Regulations if they meet conditions relating to covered bond/securitisation arrangements or non-financial business interim creditors. The intention is for these exemptions to be replicated for the FMA consumer credit licence by regulations under the Financial Markets Conduct Act.
About Supervision
What does supervision look like?
The FMA's approach to supervision is proactive, risk-based and focused on fair conduct. Our goal is to protect consumers and ensure fair treatment across financial services.
We are focused on outcomes. This means we concentrate on what will have the greatest impact for consumers and businesses. We target significant risks and opportunities, look to reduce unnecessary regulatory burden and give you flexibility in how you meet your obligations.
We focus our efforts on those participants or practices that present the greatest risk of harm. We primarily do this through:
Engagement - Proactive activities like roundtables, webinars, guidance, and meetings with boards and senior management.
Monitoring - Gathering deeper insights through thematic reviews, on-site or desk-based supervision, interviews and system demonstrations.
The action taken by the FMA in response to its supervision activity will depend on the severity of any findings.
What are the outcomes the FMA aims to achieve?
Our current financial year priorities are outlined in our June 2025 Financial Conduct Report. Key outcomes include:
Why does the FMA monitor?
Our supervisory approach is aligned with the regulatory priorities outlined in our annual Financial Conduct Report and with our assessment of sector and firm risks. We may get in touch to gain a better understanding of your business or the sector generally, or if there are concerns about potential non-compliance.
What happens if we're selected for a monitoring visit?
We'll be in touch beforehand to discuss the scope and timing. Then we'll send a formal notice with at least 2 weeks' notice for interviews. Monitoring may take place at your premises or virtually and typically lasts 1-4 days. We expect you to be open, cooperative and have all relevant staff available to us. In turn, we'll be professional, communicate clearly and cause minimum disruption.
What is thematic monitoring?
Thematic monitoring is deep-dive review work to build understanding of a market segment or issue. We monitor a selection of entities covering a range of size, complexity, risk and products offered. We publish findings and provide individual feedback to participating entities.
What are the possible outcomes of monitoring?
We'll send you a feedback letter within four weeks. This will outline the seriousness of our findings, any required actions and the timelines for any further actions.
We may require no further action but give feedback for improvement or we may request additional information or follow up visits. If we do identify any issues, you must rectify them within the stipulated timeframe and you must provide evidence that they have been rectified. If there looks to be material conduct issues, we may consider these through a more formal investigation.
What happens if we're not compliant?
Our preference is to take an educative and guidance approach to achieve compliance. However, if it looks like serious breaches or misconduct have occurred, or if you're unwilling to comply, we may take more formal and proportionate regulatory action, including using our administrative tools such as warnings or orders, or proceeding to litigation.
Do I need to comply with Conduct of Financial Institutions (CoFI) obligations in the Financial Markets Conduct Act to treat customers fairly?
CoFI obligations only apply to registered banks, licensed insurers and licensed non-bank deposit takers.
About Enforcement
What does the Response and Enforcement team do?
We deal with significant misconduct, i.e. breaches of legislation, and use regulatory tools to intervene.
How does the FMA find out about possible misconduct?
Possible misconduct is referred to us through a number of channels. It could come via monitoring, it could be complaints from consumers or investors, self-reports from firms or referrals from other agencies like the police or Commerce Commission.
What happens when you get a report?
We have triage criteria which influences how we assess a case. The seriousness of the misconduct is always the primary consideration, but we also look at harm, duration, scale and alignment with our regulatory priorities. We also consider how quickly and effectively issues are remediated.
What should we do if we discover an issue?
The top priority is to stop harm. As soon as possible, you should escalate any issues to your board, if you have one, and the FMA. Timely remediation and communication with your customers is crucial. Don't wait to make contact until you've fully resolved the problems. Early engagement is better for everyone.
How do you decide what action to take?
Our response is always proportionate to the misconduct and aimed at achieving an appropriate market outcome or change in behaviour. For less serious issues, we may intervene informally or at a low level e.g. issuing feedback letters as a regulatory response.
For more significant misconduct, we may use a combination of regulatory tools and a full investigation, followed by litigation if necessary. This approach allows us to stop harm quickly and hold individuals or entities accountable for serious breaches.
What are the regulatory responses the FMA can use?
Once the transfer of credit regulation occurs, we intend to use the full range of regulatory responses available to us. These include:
Warnings - issued for a moderate or serious contravention of the legislation. Warnings are publicised unless there are exceptional circumstances.
Direction orders - there is a moderate or serious contravention of the legislation and an order is required to modify ongoing behaviour.
Stop orders - there is a moderate or serious contravention of certain parts of the legislation and an order is required to stop ongoing behaviour.
Action plans - enable the FMA to require and support improvements to compliance.
Licence conditions - we can impose certain requirements on an entity.
Licence suspension or cancellation - in serious cases we can cancel a licence to remove them from the market.
What about litigation actions?
Litigation is reserved for some of the most serious conduct. Any decision to litigate is made by a division of the FMA Board after staff recommendation.
Possible actions include:
Enforceable undertakings - Admissions and remedial action without court proceedings.
Civil proceedings - For serious contraventions; proof on balance of probabilities.
Criminal proceedings - For intentional or reckless breaches; proof beyond reasonable doubt.
How does enforcement under the FMA differ from the Commerce Commission?
There are many similarities in the enforcement responses of both regulators, however the FMA has some additional regulatory responses, including Direction Orders, Stop Orders and Action Plans. In line with its focus on outcomes, the FMA will combine its regulatory tools with investigations and litigation where needed, using a proportionate response to effect behaviour change..
What is a section 25 notice?
A section 25 notice is similar to the Commerce Commission's section 98 notice. It's a legal notice that allows the FMA to require any person to provide information or documents if needed to carry out its responsibilities.
What will happen to existing Commerce Commission cases?
The intention is for the FMA to take over responsibility for active CCCFA cases at the time of the transfer. The Commerce Commission and FMA will discuss these arrangements with relevant lenders closer to the time. Relevant data held by the Commerce Commission about lenders, and about the credit market, will also be transferred to the FMA.
Other Questions
Do you anticipate any changes to the cost of borrowing as a result of these changes?
Lenders must still follow CCCFA rules that keep credit and default fees reasonable. The special rules for high-cost loans (where interest or combined fees are over 50%) are not changing.
Will there be levies for credit providers?
Not right now. There is no levy in place to fund credit regulation at the moment. When the transfer happens, the FMA will receive government funding to cover credit regulation. The August 2024 Cabinet paper for the financial services reforms: policy decisions outlined the Minister's intention to review the FMA's funding requirements and levy after the transfer to ensure FMA is appropriately funded for its expanded remit. However, there is no timetable for that discussion yet.
Will the FMA continue to engage with consumer advisory sector?
Absolutely. The FMA is an engagement-led regulator, and similar to the Commerce Commission's approach, we will work closely with the consumer advisory sector. Our approach is to focus on areas where we see the greatest potential for harm, so we can make the biggest difference for consumers.
We engage in several ways, including:
This ongoing engagement helps us stay informed and ensure our regulatory approach reflects consumer needs.
Will lenders need to submit an annual return to the Commission in 2026?
Under the CCCFA an annual return covering the period 1 April 2025 to 31 March 2026 is due to be provided to the Commission by 30 June 2026. The Credit Contracts and Consumer Finance Amendment Bill before Parliament repeals the annual return obligation in the CCCFA. The Commission will issue further messaging in early 2026 regarding the annual return obligation.
