Commerce Commission aims to raise standards

From 1 October 2021 all consumer credit lenders and mobile traders must be certified as ‘fit and proper’ under the Credit Contracts and Consumer Finance Act 2003 (CCCF Act) by the Commerce Commission (the Commission).

This means that if a company is a provider of consumer credit (lender) or a mobile trader, they must be certified under Part 5A of the Credit Contracts and Consumer Finance Act 2003 (CCCF Act) by the Commission.

To gain certification applicants must satisfy the Commission that they (if they are sole trader) or their directors and senior managers (if they are a company) are fit and proper persons to hold their positions.

The Commission needs to be satisfied these individuals are financially sound, honest, reputable, reliable, and competent to perform their role.

Applications for certification are open from 1 June 2021. Certification becomes compulsory from 1 October 2021 as part of changes to the CCCF Act. From this date, lenders and mobile traders must be both certified by the Commission and registered on the Financial Service Provider Register (FSPR) to provide lender or mobile trading services.

To assist lender and mobile traders in this certification process, the Commission has prepared guidance. This is available for download here.

The Commerce Commission can be contacted at certification@comcom.govt.nz