11. Financial Services—Registration of Providers
[Sitting date: 24 July 2014. Volume:700;Page:5. Text is subject to correction.]
11. Dr JIAN YANG (National) to the Minister of Consumer Affairs : What changes have recently come into force that strengthen financial service provider registration?
Hon CRAIG FOSS (Minister of Consumer Affairs): This month a range of new measures to strengthen the financial service provider registration and dispute resolutions regime came into effect. We have made improvements to the financial service provider registration rules and we have introduced new powers to allow the Financial Markets Authority to block the registration of financial service providers if needed. These registration changes help to protect New Zealand’s international reputation as one of the best and most trusted places to do business. These changes are part of the recently passed Credit Contracts and Financial Services Reform Bill, which brings in tougher laws to target loan sharks and help consumers, New Zealanders, make more informed decisions.
Dr Jian Yang : What other changes were made to consumer credit contract legislation to ensure more informed borrowers and more responsible lenders?
Hon CRAIG FOSS : We have improved protections for borrowers and targeted unscrupulous lending practices by, first, requiring lenders to comply with lender responsibility principles and requiring more timely and complete disclosure of loan terms so that consumers have the information they need to make informed decisions, and strengthening repossession rules, including prohibiting some essential household items such as beds and heaters from being repossessed, and boosting enforcement powers and penalties to crack down on those lenders who breach the law. These changes are good for consumers, they protect New Zealanders, and meet the objectives outlined in the National Government’s Business Growth Agenda.

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