Financial Services Reforms 2025 New Zealand: What You Need to Know
New Zealand’s financial services are getting a major update in 2025. These changes make things simpler for everyoneconsumers, businesses, and people with disabilities or health conditions. The government wants to cut red tape, ensure fair treatment, and help businesses grow. Let’s break down the reforms, their impact, and what they mean for you.
Why Are These Reforms Happening?
The government aims to streamline financial services. They want to reduce costs for businesses and protect consumers. These reforms help everyone, including vulnerable groups like those with disabilities. The goal is a fair, efficient system that supports New Zealand’s economy.
The 2024-25 Financial Services Reforms
In January 2024, the government announced plans to fix financial services regulations. These reforms have two phases:
- Phase 1 (Started April 2024): Quick changes to ease loan rules. For example, some loans, like those for voluntary targeted rates, are now exempt from strict requirements. This helps lenders and borrowers save time and money.
- Phase 2 (Ongoing into 2025): Bigger changes to make the system consistent. Key updates include:
- Moving oversight of credit contracts from the Commerce Commission to the Financial Markets Authority (FMA).
- Updating the Conduct of Financial Institutions (CoFI) rules to balance fairness and simplicity.
- Reviewing licensing to ensure only qualified providers offer services, without excessive barriers.
These reforms aim to make financial services clearer and less costly for everyone.
Three New Bills Introduced on 31 March 2025
On 31 March 2025, the government introduced three bills to reshape financial services:
| Bill Name | Key Changes | Impact |
|---|---|---|
| Financial Markets Conduct Amendment Bill | Creates one license for all market services. Clarifies fair treatment rules. Gives FMA inspection powers. | Less paperwork for businesses. Stronger oversight ensures fairness. |
| Financial Service Providers (Registration and Dispute Resolution) Amendment Bill | Strengthens dispute resolution schemes. Allows independent reviews. | Easier for consumers to resolve issues with banks or insurers. |
| Credit Contracts and Consumer Finance Amendment Bill | Moves oversight to FMA. Introduces new creditor licensing. Improves disclosure rules. | More consistent rules. Fairer deals for borrowers. |
These bills reduce red tape, improve consumer rights, and ensure businesses follow clear standards. They’re moving through Parliament, with submissions open soon.
AML Reforms Announced on 17 July 2025
On 17 July 2025, the government announced four anti-money laundering (AML) bills to fight financial crime:
| Bill Name | Expected Enactment | Key Measures |
|---|---|---|
| Statutes Amendment Bill | End of 2025 | Simplifies family trust home sales. |
| AML and Countering Financing of Terrorism Amendment Bill | End of 2025 | Eases child bank account setup. |
| AML (Supervisor, Levy and Other Matters) Amendment Bill | Second half of 2026 | Caps international cash transfers at NZD5,000. Bans crypto ATMs. |
| AML (Omnibus) Amendment Bill | Second half of 2026 | Uses risk-based customer checks. |
Key changes include:
- Family Trusts: Less paperwork for home sales if ownership and trustee details are verified.
- Kids’ Bank Accounts: A birth certificate linked to a parent’s account is enough.
- Stricter Rules: Police and regulators get more enforcement power. A new financial sanctions system is coming.
- Cash and Crypto: International cash transfers are capped at NZD5,000. Crypto ATMs are banned to reduce money laundering.
- Risk-Based Checks: Businesses focus on high-risk customers, making processes more efficient.
Law firms like Minter Ellison note the need for clear guidance to avoid complexity. These reforms balance simplicity with strong protections.
Impact on Consumers and Businesses
- Consumers: You’ll get clearer information from banks, insurers, and lenders. Dispute resolution is easier, ensuring fair treatment. Vulnerable groups, like those with disabilities, benefit from better access to services.
- Businesses: Employers face less paperwork and clearer rules. This saves time and money, letting businesses focus on growth.
- Employment: New rules may create jobs in the financial sector. Employees might need training to meet new standards.
Services like Workbridge (workbridge.co.nz) can help. They support people with disabilities or health conditions to find jobs and manage finances. Contact them at 0508 858 858 for free employment services.
How These Reforms Affect Jobs and Support
The reforms could boost job opportunities in financial services. Employers may need to train teams on new rules, creating demand for skilled workers. For people with disabilities, Workbridge offers free support to find the right job. They help with CVs, interviews, and matching skills to employment opportunities, ensuring everyone can benefit from these changes.
Why This Matters to You
These reforms impact how you save, borrow, and invest. Consumers get fairer deals and stronger rights. Businesses enjoy simpler processes, saving time and money. The community benefits from a trustworthy financial system that supports everyone, including those with health conditions or disabilities.
What’s Next?
- The three bills are in Parliament, with updates expected soon.
- AML reforms start rolling out by late 2025, with full changes by 2026.
- Check official sources like MBIE (mbie.govt.nz) or FMA (fma.govt.nz) for the latest news.
- Seek advice from professionals to understand how these changes affect your finances or business.
Final Thoughts
New Zealand’s 2025 financial services reforms make life easier for everyone. They cut costs, ensure fairness, and support the community. Whether you’re managing money, running a business, or seeking work, these changes help you thrive. Stay informed, and use resources like Workbridge for support or contact us.