CCCFA wrecking ball to be turned on its head
Seen as the biggest wrecking ball the property market has ever encountered, Commerce and Consumers Affairs Minister Andrew Bayly says reforming the CCCFA is a priority.
Rewriting it to protect vulnerable consumers without unnecessarily limiting access to credit, was included in National’s coalition agreement with ACT.
Speaking to the Financial Services Council, Bayly says firstly responsibility for the CCCFA will be transferred from the Commerce Commission to the FMA, which will become the financial services conduct regulator while the Reserve Bank will be the prudential regulator.
In a specific two-pronged reform, the prescriptive affordability requirements for lower risk lending will be removed and a more substantive review of the CCCFA will be done. This will include reviewing its penalty and disclosure regime, and its relationship with CoFI.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
