Commonsense Financial Reforms Underway
Press Release – New Zealand Government
Our Government is delivering on its promise to make it easier for New Zealanders to access the financial services they need, whether its buying a home, growing a business, or simply managing everyday life, says Mr Simpson.
Hon Scott Simpson
Minister of Commerce and Consumer Affairs
Last night the Government took a major step toward restoring common sense to financial regulation, with the first readings of three important reform bills, says Commerce and Consumer Affairs Minister Scott Simpson.
'Our Government is delivering on its promise to make it easier for New Zealanders to access the financial services they need, whether it's buying a home, growing a business, or simply managing everyday life,' says Mr Simpson.
'For too long, New Zealanders have been trapped by rules that are overly bureaucratic, unnecessarily repetitive, and sometimes just downright silly. Today, we've begun to fix that.'
The Credit Contracts and Consumer Finance Amendment Bill, the Financial Markets Conduct Amendment Bill, and the Financial Service Providers (Registration and Dispute Resolution) Amendment Bill are the first legislative steps in a broader package aimed at rewiring New Zealand's financial services regulation. Together, they form part of a comprehensive overhaul that will rebalance the system to ensure consumer protection without stifling access to credit or innovation.
'For many Kiwis, the absurdity of past rules became clear when banks were forced to quiz them about what they'd been spending on takeaways or Netflix subscriptions before approving a mortgage. That wasn't responsible lending, it was regulatory overreach.'
These three bills focus on addressing some of the most counterproductive aspects of the current law:
Regulators empowered to take proactive action: The Financial Markets Authority will be given the tools needed to effectively oversee lending, banking and insurance markets to the benefit of consumers.
Removing unnecessary personal liability: Senior managers and directors will no longer face personal liability for compliance failures. Responsibility will sit with the businesses, where it belongs.
Streamlining licensing requirements: Financial service providers will no longer need to hold multiple overlapping conduct licences, reducing duplication and compliance costs across the sector.
Improving dispute resolution services: The Bill strengthens oversight and independent governance of financial dispute resolution schemes, ensuring Kiwis can have confidence in fair, effective support when things go wrong.
A fairer and more proportionate approach to non-disclosures: Another change, which will apply retrospectively for the period between 2015 and 2019, will enable the courts to apply greater discretion when a lender has failed to disclose certain information to consumers.
'These changes are pro-consumer, pro-competition, and pro-growth. They ensure that financial institutions are held to account without being tied up in needless red tape that drives up costs for everyone.'
The reform package delivers on a core part of the National-ACT coalition agreement to rewrite the Credit Contracts and Consumer Finance Act 2003.
'These changes are about enabling our economy to flourish. Financial regulation should protect people, not block their ambitions. This progress means we're one step closer to a more dynamic, fair, and accessible financial system for all.'
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Kiernan said, the prosperity or otherwise of some regions could be traced back to the economic reforms of the 1980s. "When there were massive transitional costs from the removal of protection or subsidies for some industries, which resulted in high and persistent unemployment in some areas, dragging down average socioeconomic outcomes for those areas." ADVERTISEMENT Manawatū-Whanganui Mt Ngauruhoe and Mt Ruapehu view from Lake Taupo (Source: MBIE said this region had average household income of $119,200 and GDP per capita of $59,834. Whanganui had the biggest annual spending change in the country in May, up 6.9%. Palmerston North is relatively affordable for renters, requiring 26.4% of income, according to Cotality, and towards the cheaper end for buying, too, at 34%. Compared to income, housing in Whanganui is more expensive. 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It is the cheapest main centre to rent in, with median rents 23.5% of median household income. Spending in May was down 1.3% year-on-year, the only centre to record a fall. Marlborough Picton, Marlborough. (Source: Marlborough has an average household income of $119,100 and GDP per capita of $84,296. It has the second-highest average credit score in the country according to Centrix, behind nearby Tasman region. ADVERTISEMENT Kiernan said the unemployment rate tended to be lower on average in the South Island. He said historically, people who did not have a job there would leave to find one, and that could mean shifting to cities in the North Island. "That tends to keep a cap on joblessness down there." Marlborough's unemployment rate is 3.1%. Tasman Picton, Marlborough. (Source: As well as having the highest credit scores in the country, the Tasman region has some of the least affordable housing, according to Cotality. 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