On 28 May 2026, the Credit Contracts and Consumer Finance Amendment Bill (Bill) passed its third reading in the House and is expected to receive Royal Assent shortly. The date for the transfer of regulatory responsibility for the Credit Contracts and Consumer Finance Act 2003 (CCCFA) from the Commerce Commission to the Financial Markets Authority (FMA) has been confirmed as 1 July 2026, being the date on which most provisions of the Bill will come into force.
As discussed in our previous articles (here, here, and here), the Bill forms part of the Government's broader financial services reform plans, alongside the Financial Markets Conduct Amendment Bill and the Financial Service Providers (Registration and Dispute Resolution) Amendment Bill.
What is changing under the CCCFA?
- Transfer of regulatory responsibility to the FMA: From 1 July 2026, the FMA will take over from the Commerce Commission as the regulator for the CCCFA, becoming New Zealand's single conduct regulator for financial markets, including consumer credit.
- Replacement of certification with market services licensing: The existing certification regime is being repealed and replaced with the FMA's market services licensing regime, with certified lenders automatically receiving a market services licence at the date of transfer without needing to apply or pay a fee. Lenders holding a market services licence will be subject to new ongoing obligations, including a mandatory self-reporting obligation under section 412 of the Financial Markets Conduct Act 2013 (FMCA).
- Repeal of the section 59B personal due diligence duty: Section 59B, which imposes a personal due diligence duty on directors and senior managers of consumer credit lenders, is being repealed. In its place, the existing regime in the FMCA that imposes personal liability for a person "involved in a contravention" will apply. The transitional provisions make clear that the amendments will not apply retrospectively – directors and senior managers will still have a due diligence duty in respect of consumer credit contracts entered into before the repeal takes effect.
- New court order regime: New sections 94AA to 94AC enable a court, on the application of a debtor or the FMA, to order that a debtor is not liable for any or all costs of borrowing in relation to a period during which a creditor failed to comply with its disclosure obligations under sections 17 or 22 (and also inserting equivalent provisions for lessees and transferees). The court must be satisfied, having regard to matters such as whether the creditor had an appropriate compliance programme and the extent to which the debtor was prejudiced, that it is just and equitable to make the order.
- Other changes: The Bill introduces a number of other changes including replacing the definition of "family trust" with "express trust", introducing class declaration and exemption powers for the FMA and related procedural requirements, adjusting continuing disclosure requirements, introducing new FMA enforcement powers including stop and direction orders (and associated liability provisions) and making consequential amendments to the FMCA and related legislation.
Timing of changes
- Changes coming into force on the day after Royal Assent: The sections collectively give effect to the repeal of the annual return requirements under the CCCFA. Consumer lenders will not need to file annual returns in respect of any 12-month period starting on or after 1 April 2025.
- Changes coming into force six months after Royal Assent: These provisions bring in an extended definition of "repayment waiver" to include waivers where the amount payable under an insurance contract on the total loss of insured property is less than the unpaid balance of the credit contract. A new section 27A gives debtors the right to cancel a repayment waiver or extended warranty separately from the consumer credit contract, provided the repayment waiver or extended warranty has not been reasonably required by the creditor, within five working days of initial disclosure being made (or at any time if disclosure has not been made). The initial disclosure provisions in Schedule 1 will also be amended to require specific, rather than general or by kind, identification of consumer goods that are subject to a security interest.
- Changes coming into force on 1 July 2026: The remaining provisions of the Bill come into force on 1 July 2026.
Our view
The transfer of responsibility for the CCCFA from the Commerce Commission to the FMA represents an important step towards a more efficient and accessible regulatory structure for the financial services sector. As we have noted in our previous articles, consumer lenders can expect a meaningful shift in regulatory culture under the FMA. The FMA has consistently signalled that its intent is to be an outcomes-focused regulator, including ensuring that consumers are accessing fair and quality services.
Consumer lenders should ensure their compliance frameworks, governance arrangements, and processes are up to date in anticipation of the 1 July 2026 transition date. In particular, lenders who are not currently supervised by the FMA should take steps now to familiarise themselves with its supervisory approach and expectations along with other changes to the CCCFA regime being made by the Bill, such as in relation to "repayment waivers".
If you would like to discuss these reforms or any aspect of the CCCFA, please get in touch with our financial services regulation team.
This article was prepared by Andrew Suggate (senior associate) and Lily Rose Hosseini (law clerk).
