Consumer credit provider licensing

Who needs a licence

Whether a licence is required will depend on the type of credit you provide and who you provide it to. From the transfer date, any entity that is acting as a creditor under a consumer credit contract will need a consumer credit provider licence.

You may not be required to hold a consumer credit provider licence if you do not carry on a business of providing credit. We recommend seeking legal advice if you are unsure whether a licence is required.

Please see our fact sheet for further information on licensing. 

Download the ‘What it means to be licensed by the FMA as a consumer credit provider' factsheet [263KB]

If you plan to provide credit to consumers in New Zealand before the transfer, you will need to be certified by the Commerce Commission (the Commission). Further information can be found on the Commission’s website: Credit providers | Commerce Commission

Existing consumer credit providers certified or exempt by the Commission

Under the new legislation, a consumer credit provider with a certification (or exemption because they are already licensed by the FMA or Reserve Bank of New Zealand) granted by the Commission will automatically be deemed to hold a consumer credit provider licence. This means you will be subject to the same ongoing obligations and oversight as other licence holders under the Financial Markets Conduct Act 2013. 
 
While your previous certification or exemption reflects compliance with certain regulatory standards, you should consider what changes may be needed to your policies, systems and governance to support compliance with your ongoing obligations as a licensee. 
 
We recommend familiarising yourself with the new consumer credit provider licence application guide once it becomes available. This will help you consider how your existing practices can be mapped to, or adapted for, the licensing framework.  
 
If you have questions about transitioning from the Commission certification or exemption to a licence, please contact the FMA for further guidance.

New entrants needing to apply for a consumer credit provider licence

The legislation will require new entrants to the market who intend to operate as a consumer credit provider to hold a licence before providing regulated credit services to consumers. 

Licensing costs

Existing certified (or exempt because they are already licensed by the FMA or Reserve Bank of New Zealand) consumer credit providers will be deemed to hold a consumer credit provider licence and will not need to apply or pay an application fee.

The standard application fee for a consumer credit provider licence is $670.00. Please note this fee is still to be confirmed – regulations prescribing amounts are expected to be made and be published in mid to late June, and in force from 1 July. 
 
If the time required to assess your application exceeds 4.75 hours (to be confirmed – regulations prescribing hours are expected to be made and be published in mid to late June, and in force from 1 July), we may charge an additional fee in line with the Financial Markets Conduct (Fees) Regulations 2014. This is charged at $178.25 per hour (pro rata for part hours) for work carried out by an FMA staff member. Please refer to the regulations for further information. 
 
If we expect your application to incur additional fees, we will let you know in advance and explain why. 
 
Applications to vary the conditions on an existing licence incur an application fee of $115.00, plus $178.25 per hour (pro rata for part hours) for work carried out by an FMA staff member.  
 
All amounts are GST inclusive.  
 
These fees cover the consumer credit provider licence only and do not include any annual levies or FSPR registration fees.

After you submit a licence application

Once we receive your licence application, we will acknowledge it by email. During our assessment, we may contact you if we need clarification or more information. This is the same approach we use for all licence applications.

Related information

• What it means to be licensed factsheet [263KB]
• CCCFA legislation webpage
• Financial Service Providers Register (FSPR)