Coasties can expect big changes in the financial services landscape as the Government announces a package of reforms aimed at improving access to finance.

Commerce and Consumer Affairs Minister Andrew Bayly shared details about the plan, focusing on reducing complexity in the system and making it easier for Kiwis to secure loans when needed.

“Financial services are foundational for economic success and are woven throughout our lives,” Bayly said.

He explained that the current financial environment has become overly complex due to layers of regulation, which has led to conservative lending practices and unnecessary burdens on businesses.

The reforms are designed to simplify the rules and responsibilities of financial institutions while maintaining consumer protections.

One major change includes removing personal liability for directors and senior managers of financial institutions and shifting responsibility back to businesses.

Bayly noted that while lenders will still be held accountable for bad loans, enforcement will focus on genuine cases of financial harm.

Another key change is the transfer of consumer lending regulation from the Commerce Commission to the Financial Markets Authority (FMA).

The FMA will play a stronger role in protecting consumers and monitoring market conduct.

Lenders will also transition to a new licensing model, aligning them with other financial entities regulated by the FMA.

Bayly described the reforms as a significant shift towards a more common-sense approach, reducing the restrictive landscape and offering a more proportionate response to lending practices.