Non-bank deposit takers fail to elude latest Govt crackdown

The Minister of Commerce and Consumer Affairs David Clark has responded to a request for exemption from the Conduct of Financial Institutions Bill (COFI), by the Financial Services Federation (FSF) with a polite version of 'Sorry, but not a chance.'

There are 18 registered NBDTs including Finance Direct, General Finance, Gold Band Finance, Liberty Financial and Xceda Finance. The rest of the organisations are credit unions and building societies

They are scheduled for regulation along with other financial institutions under the CoFI bill, which is wending its way through parliament. 

The bill requires financial institutions to implement a “Fair Conduct” programme, to ensure that “financial institutions treat consumers fairly.”