Change comes under Credit Contracts and Consumer Finance Amendment Act
Under the Credit Contracts and Consumer Finance Amendment Act 2026, which received royal assent on 4 June 2026, the Financial Markets Authority, rather than the Commerce Commission, will be responsible for consumer credit regulation as of 1 July 2026.
“The transfer of responsibility for the CCCFA from the Commerce Commission to the FMA is an important step toward a more streamlined regulatory environment for the financial services sector,” said Clare Bolingford, FMA executive director for licensing and conduct supervision, in a media release.
Cameron Brewer, commerce and consumer affairs minister, noted that the shift in responsibility will bring firms under the FMA’s licensing regime.
“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,” Bolingford said.
According to Brewer, this change aims to make the regulatory system clearer and more consistent.
“This isn’t just a change in oversight – it’s a move toward a more connected and coordinated approach to regulating financial market conduct,” Bolingford said. “By aligning credit regulation with broader financial services, we’re creating a framework that better supports responsible lending and consumer protection.”
Bolingford explained that the FMA plans to collaborate closely with lenders and industry stakeholders to help attain fair outcomes in the financial services sector and garner the trust of businesses, consumers, and investors.
Bolingford noted that the FMA also intends to use its regulatory and enforcement powers to respond to misconduct that can harm consumers.
“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,” Bolingford said in the FMA’s media release.
“We are proud of our last 20 years as the regulator of the consumer credit function and the dedicated work of our people at the Commission,” said Sarah Bartlett, acting general manager of the Commerce Commission’s Office of the Board and Chief Executive. “They have played a critical role in ensuring lenders’ compliance with the Act, and taking enforcement action where necessary.”
In the government’s news release, Brewer said the recently passed legislation aims to:
According to Brewer, “under Labour’s CCCFA changes, lending became harder, slower, and more frustrating than it needed to be. Borrowers were put through intrusive and unnecessary checks, lenders became overly cautious, and good Kiwis were left jumping through hoops just to get a loan.”
