About the transfer
What is the transfer?
Regulatory responsibility for the CCCFA has transferred from the Commerce Commission to the FMA. The financial service of being a creditor under a credit contract is now a licensed service under the remit of the FMA's Financial Markets Conduct Act 2013.
When did the transfer happen?
On 1 July 2026 the FMA took over responsibility for regulating the CCCFA from the Commerce Commission, after Parliament passed the Credit Contracts and Consumer Finance Amendment Act into law.
Why move consumer credit regulation to the FMA?
The transfer simplifies and streamlines the regulatory environment by establishing a single conduct regulator for financial markets, reducing duplication for regulated entities. It also enables stronger consumer protections through enhanced conduct regulation tools.
How has the transfer been managed?
Experienced credit regulation professionals from the Commerce Commission have joined the FMA, bringing a wealth of knowledge to support the sector. The FMA now has a dedicated frontline credit team as well as credit staff from the Commerce Commission positioned in existing FMA teams to deal with credit matters.
The transfer process was managed with robust governance and security protocols for data transfer, along with induction plans for staff who transferred from the Commerce Commission and a CCCFA implementation programme for existing FMA staff, to support a transition-ready consumer credit regulatory strategy.
Where do I go for advice and support or to get answers to questions?
From 1 July all communications relating to credit regulation and the CCCFA should be with the FMA. You can contact us here or call on 0800 434 566 from inside New Zealand or +64 3 962 2695 from overseas.
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 does the FMA regulate?
Firms we currently license include banks, non-bank deposit takers, and insurers; KiwiSaver providers and other fund managers; derivatives 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?
Please let us know about any concerning behaviour. You can make a complaint to the FMA via our website.
About Licensing
What has changed?
As part of the reform, the certification regime ended and was replaced with the FMA's licensing regime for consumer lenders. Mobile traders do not require a licence unless they are acting as a creditor under a consumer credit contract.
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.
All consumer lenders certified at 1 July 2026 (or exempt from certification on the basis that they are licensed/authorised by the FMA or Reserve Bank) have automatically been deemed to hold 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, as well as considering 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 I was certified by the Commerce Commission?
If you were certified (or exempt from certification because you are licensed or authorised by the FMA or Reserve Bank) at the date of transfer, you have been deemed to hold an FMA licence for the consumer credit service. The FSPR has been updated automatically, and you will not need to apply, pay a fee or provide any licensing information. This ensured continuity and minimised disruption.
When can I apply for a new licence from the FMA?
You can now apply for a licence from the FMA. More information about the licensing regime and how to apply for a licence is available on the FMA’s website here. You can also contact the licensing team at [email protected] if you have any questions.
Please note, you must not offer consumer credit services until you are licensed by the FMA.
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 as a licence holder?
Noting the existing due diligence obligations at section 59B of the CCCFA, we expect that lenders have compliance frameworks and documentation in place. If you don't have written processes, it's good to start documenting those, and your compliance and governance approach. Even a simple overview is a good start.
We also recommend you register for myFMA, our secure online services portal. You will need a RealMe login to register.
What does licensing look like?
Once you are licensed there will also be ongoing obligations set by legislation and through licence conditions. While we will not impose standard licence conditions immediately across all credit licences, we are proposing to impose conditions on licensed consumer credit providers. We plan to consult with licensees on these proposed conditions later in 2026 and will keep you updated as this work progresses.
What kind of conditions is the FMA likely to consider?
See the standard conditions for other licences here for an example of the types of conditions that may be considered for consumer credit provider licences.
What other obligations are there?
As a licensee you have general reporting obligations.
If any of the following occurs, the licensee or an authorised body must, as soon as practicable, send a report containing details of the matter to the FMA:
- The licensee or authorised body is, or it is likely that either will become, subject to an insolvency event, or a director or senior manager of the licensee or any key personnel of an authorised body is adjudicated or is likely to be adjudicated bankrupt (whether in New Zealand or overseas).
- The licensee or an authorised body becomes aware that a relevant proceeding or action has been commenced or taken against the licensee, an authorised body, a director or senior manager of the licensee, or any of the key personnel of an authorised body.
- A director or senior manager of the licensee or any key personnel of an authorised body resigns, is removed or otherwise ceases to hold the office or position, or is appointed, employed or engaged.
- An auditor of the licensee or an authorised body resigns or otherwise ceases to hold office or is appointed (other than by way of reappointment).
- The licensee or an authorised body proposes to change its name or its legal structure.
- The licensee or an authorised body proposes to enter into a major transaction.
- The licensee or an authorised body becomes aware that a transaction or an arrangement has been entered into, or it is likely that a transaction or arrangement will be entered into, that will result or has resulted in a person obtaining or losing control of the licensee or the authorised body.
In addition to the above reporting obligations, under s412 of the Financial Markets Conduct Act, you must 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 the FMA know about changes in directors or senior managers?
You can submit a licence amendment application online via the MyFMA online services portal. You need a RealMe login. There is no fee for this.
What is a material change of circumstances?
The Financial Markets Conduct Act defines a material change of circumstances 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".
What if I'm not sure whether to report something or not?
We encourage you to contact us if you are unsure about whether to report something or not. We aim to be practical, and we know most providers want to do the right thing. We'll work with you to determine the best approach.
What if I am a mobile trader?
The service of being a mobile trader will not require an FMA market service licence.
Mobile traders that are treated as creditors under consumer credit contracts under s16A of the CCCFA require an FMA licence for the service of acting as a creditor under a consumer credit contract. If you were a mobile trader certified by the Commission for the service of being a creditor under a consumer credit contract, you are now deemed to hold an FMA licence for the consumer credit service.
If you were certified by the Commission for the service of being a mobile trader at the transfer date, your certification for that service has ceased and you are not deemed to hold an FMA licence.
What happened to covered bond/securitisation arrangements and non-financial business interim creditors?
Previously some lenders were exempt from certification by the Credit Contracts and Consumer Finance Regulations if they met conditions relating to covered bond/securitisation arrangements or non-financial business interim creditors. These exemptions have been replicated for the FMA consumer credit licence by regulations under the Financial Markets Conduct Act. See regulations 183B and 183C of the Financial Markets Conduct Regulations 2014 that took effect on 1 July.
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 our supervision activity will depend on the severity of any findings.
What are the outcomes the FMA aims to achieve?
Our priorities for the current financial year are outlined in our June 2026 Financial Conduct Report. Key outcomes include:
- Fair services - Products deliver what is promised, benefits reflect risk, and providers act fairly
- Quality ongoing service - Interests of consumers considered throughout the relationship
- Improved access to products and services- Products and services meet New Zealanders’ needs
- Resilient markets and providers - Confidence in infrastructure and safeguarding of assets
- Market innovation and growth - Innovation balanced with integrity and choice
- Well-informed investors and consumers - Accurate, timely information for good decisions
- Market integrity and transparency – New Zealand’s markets have a strong reputation for honesty and trust
Why does the FMA conduct monitoring?
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?
The FMA will 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. As part of this we will 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 will 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-based 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?
The FMA’s Response and Enforcement team deals with significant misconduct, i.e. breaches of legislation, and uses 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, complaints from consumers or investors, self-reports from firms, or referrals from other agencies like the police or Commerce Commission.
What happens when the FMA gets a misconduct report?
We have triage criteria that influence how we assess a case. The seriousness of the misconduct is always the primary consideration, but we also look at 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 until you've fully resolved the problems to make contact. Early engagement is better for everyone.
How does the FMA decide what action to take?
Our response is always proportionate to the misconduct and aims to achieve 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?
As part of our regulation of the credit sector, 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 – when there is a moderate or serious contravention of the legislation and an order is required to modify ongoing behaviour.
- Stop orders – when there is a moderate or serious contravention of certain parts of the legislation and an order is required to stop ongoing behaviour.
- Action plans – these 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 a licensee from the market.
What about litigation actions?
Litigation is reserved for the most serious misconduct. Any decision to litigate is made by a division of the FMA Board after staff recommendation.
Possible actions include:
- Enforceable undertakings – For 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 by the FMA differ from the Commerce Commission?
There are many similarities in the enforcement responses, however the FMA has some additional regulatory response options, including direction orders, stop orders and action plans. In line with our focus on outcomes, the FMA combines our 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 our responsibilities.
What has happened to existing Commerce Commission cases?
The FMA took over responsibility of active CCCFA cases on 1 July 2026. Relevant data held by the Commission about lenders, and about the credit market, was transferred to the FMA.
Other Questions
Does the FMA anticipate any changes to the cost of borrowing as a result of these changes?
Lenders must still follow CCCFA obligations 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. The FMA receives 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 the FMA is appropriately funded for our expanded remit. However, there is no timetable for that discussion yet.
Does the FMA engage with the consumer advisory sector?
Absolutely. The FMA is an engagement-led regulator, and similar to the Commerce Commission's approach, we 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:
- Regular forums and roundtables with consumer advocacy groups to share insights and hear concerns.
- Consultations on policy and guidance, where consumer perspectives help shape our approach.
- Targeted outreach and education initiatives to improve consumer understanding of financial services and rights.
- Collaborative projects with advisory organisations to identify emerging risks and trends.
This ongoing engagement helps us stay informed and ensure our regulatory approach reflects consumer needs.
