Commission seeking feedback on ‘fit and proper’ criteria

The Commerce Commission is seeking feedback on the proposed criteria it will use to assess whether a lender is ‘fit and proper’ as part of a new certification regime being introduced under changes to the Credit Contracts and Consumer Finance Act (CCCF Act).

From April 2021, the Commission must be satisfied that all directors and senior managers of lenders and mobile traders are ‘fit and proper’. These individuals must be certified as ‘fit and proper’ by the Commission before they can be registered on the Financial Service Providers Register. Lending without certification could result in penalties of up to $600,000 for a company or $200,000 for an individual.

The Commission has outlined the criteria it is proposing to use to determine whether a director or senior manager is ‘fit and proper’ in a consultation document. The criteria and the assessment focus on whether the individual is financially sound, honest, reputable, reliable and competent to do the job. The Commission is now seeking feedback from interested parties on the assessment criteria outlined in the document

The Commission is intending to provide guidance about the certification process and how it intends to apply the criteria later in the year.

Submissions can be sent by email to and are due no later than close of business Wednesday 18 March 2020. 

For more information and to view the consultation document please visit our website.


The Government has introduced a range of changes to the CCCF Act which come into effect in stages between December 2019 and April 2021. For more information on the changes and the timeline see the Ministry of Business, Innovation and Employment’s website and the Commission’s website.