Regulation, competition and credit landscape to be centre stage next month

For the first time, the FMA and Commerce Commission will share the stage to speak directly to mortgage and financial advisers about the upcoming transfer of consumer credit regulation from the commission to the FMA at the Financial Services Federation (FSF) conference next month.

Thursday, October 2nd 2025, 10:09AM

by Sally Lindsay

The shift is expected to introduce a new licensing model and streamline oversight across the financial services sector – but key questions remain about timing, implementation and impact.

There are multiple, separate licences which financial services providers must have in order to operate.

The proliferation of overlapping licensing regimes by previous governments adding layer upon layer of different regulatory requirements has long been something the FSF has argued against.

The fact that a financial institution could be required to hold six different licences for what is essentially the same activity is messy, regulatory overreach, Lynn McMorran, FSF chief executive says.

The Financial Markets Conduct Amendment Bill aims to introduce a single market services licensing regime, a welcome alternative to current requirements that will remove undue compliance costs and improve outcomes for consumers - another common-sense approach.

With changes ahead and increased alignment across financial services regulation, McMorran says advisers will be watching for indications of compliance expectations, timeframes and how credit products will sit alongside existing obligations

At the Auckland conference on 6 November in an exclusive pre-election political panel, MPs from major parties will set out their party perspectives on pressing issues affecting the wider financial services sector, including regulation over-reach and access to capital, as sector leaders push for a more competitive lending environment.

Party positions on these topics will have implications for advisers, McMorran says.
FSF, whose specialist lending members finance most personal consumer loans in New Zealand, says this year’s event comes at a pivotal time for the wider credit sector.

“Regulatory change on this scale demands clarity and collaboration, and this is the final big event of this year at which to gain insight into how the transition is set to unfold, and how industry can keep delivering for New Zealanders,” McMorran says.

“The transfer of regulatory responsibilities from the Commerce Commission to the FMA is not simply a change in signage, the FMA is resourced and structured to take a more assertive approach to bring irresponsible lenders to account.”
The FSF says getting these reforms right will boost consumer choice and help fuel broader economic growth through investment in innovation and competition.

“We’re calling for a period of stability once these reforms are through, so lenders can focus on serving customers and investing in better products – not constantly retooling to keep up with shifting regulatory goalposts,” McMorran says.

“Credit laws might not be the most glamorous headline, but these decisions impact how New Zealanders live, work and get ahead. This time, it’s essential we get the balance between access and protection right.”

« How bold will the RBNZ be?

Westpac looks to can trail commissions »

Special Offers