How good are your systems?

The Bill was reported back from select committee and progress on it will resume when the House returns on April 8.

Financial Services Federation executive director Lyn McMorran said her members broadly agreed with the principles of the bill  and did not envisage any difficulty in meeting its Responsible Lending Code once one is finalised.

But she said there were concerns about how it would be policed when it was in place. That responsibility will rest with the Commerce Commission.

McMorran said: “As is the case with all the financial regulation over the past few years, the responsible people, whether that’s lenders or financial advisers, deposit takes or investment managers, the responsible people always comply comply… it’s the unethical ones who always find a way around it. The key to stopping that is how they enforce it.”