Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Commission Seeks Feedback On Due Diligence Guidance

The Commerce Commission is seeking feedback on draft guidance for directors and senior managers of consumer credit providers and mobile traders on how to comply with the due diligence duty.

From 1 October 2021 directors and senior managers of consumer credit providers, including mobile traders selling on credit, will need to exercise due diligence to ensure the creditor complies with its duties and obligations under the Credit Contracts and Consumer Finance Act (CCCFA).

“These guidelines help to clarify how directors and senior managers should approach the task of performing their duties,” said Commission Chair Anna Rawlings.

“This is an important new obligation. The new due diligence duty obliges and incentivises individual corporate officers to drive a culture of compliance with the CCCFA from the top down. We are aware that lenders are eager to understand the law and aspects of our likely approach to enforcement. We look forward to considering the public’s feedback on this draft.”

For more information and to view the draft guidelines please visit our website.

Submissions can be made through the Commission’s submission portal. Submissions close on Friday 19 March 2021.

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

The changes include new section 59B of the CCCFA which comes into force on 21 October 2021. It requires that all directors and senior managers of a creditor under a consumer credit contract exercise due diligence to ensure that the creditor complies with its duties and obligations under the Act. This means that they must exercise the care, diligence and skill that a reasonable director or senior manager (as the case may be) would exercise in the same circumstances, taking into account the nature of the business and the position of the director or senior manager and the nature of their responsibilities. It includes taking reasonable steps to ensure that the creditor has procedures in place to ensure compliance, has in place methods to systematically identify deficiencies in the effectiveness of compliance procedures and promptly remedies any deficiencies discovered.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Stats NZ: Prices For Transport And Housing Rise In March 2021 Quarter

Higher prices for transport and housing led to a 0.8 percent lift in the consumers price index in the March 2021 quarter, Stats NZ said today. Prices for getting around rose in the March quarter. Transport prices rose 3.9 percent, the biggest quarterly ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>