Financial services not plagued by bureaucracy: new minister

The new Minister for Commerce and Consumer Affairs believes the financial industry is partly to blame for issues with the Credit Contracts and Consumer Finance Act (CCCFA).

Wednesday, February 8, 2023 at 2:29 PM

Eric Frikberg

But Duncan Webb also argues that the law has sound philosophy.

Webb replaced David Clark in the recent Cabinet reshuffle. He spoke with Eric Frikberg.

TMMO: How satisfied are you with the progress made so far in reforming the CCCFA?

Web: I chaired the selection committee that did some of that work, and I’m hearing from industry and others that this is the first cut and it’s not perfect and we’re still working on it properly. But the philosophy that lenders don’t just provide good information, they act fairly and appropriately and take the interests of the borrower into account is perfectly correct.

TMMO: Some reforms are underway and will be finalized in February. Will they be the last or is there another way to look at this?

Web: I never say the job is done. Continuing upholding the law is good practice, and this applies to the CCCFA, commercial law, and other laws.

TMMO: The fact that the Kuomintang said it would be overturned, that the lending industry was against it from the beginning, and that the reforms had to start within two months, is why the law was like a dog in the first place. does it show what it was?

Web: This shows that the financial sector was not ready to move with the times. It’s a pity that I couldn’t be more involved in that regard. Because we could have developed a better, more practical system. A financial sector that followed international best practices and was ready to put borrowing and consumers as an integral part of the lending process would not have fixed it.

TMMO: Does that mean the sector itself bears some of the blame for the fact that the law is so difficult?

Web: I’m not going to start taking responsibility. I fully accept that the first part of it didn’t work out and it’s the government’s job to get it right, but I am very involved and hope to achieve the government’s policy direction. Very open to frank and open discussion about. Borrowers are protected from poor lending practices.

TMMO: How much effort do you plan to expend to obtain a full financial advisor license under the FAP regime, or is it primarily down to the Financial Market Authority (FMA) and not the Minister?

web: Look, I’m going to be completely honest, I just stepped under my desk, I’ve had my portfolio for a little over 24 hours and I don’t really care about that particulars of my portfolio.

TMMO: Any thoughts on the Financial Markets (Institutional Conduct) Amendment Act, also known as the CoFI Act, on a similar issue, given that the National calls it a “solution looking for the problem”? do you have?

web: Again, if you want to dig deeper into some of these issues, I’m happy to do so, but given the time I’m in the portfolio, I’ll have to step back and think twice. that. I brief the parties on such issues and give them my heart, but I don’t jump on them early on.

TMMO: On a more general level, the financial industry is said to be choked with bureaucracy. do you agree with that?

Web: No, it’s not. We want our stakeholders across the industry to be able to operate effectively and efficiently, but there must always be a balance. Yes, there are requirements around good lending practices, but at the same time we are really happy to have a sector that is well balanced and has no additional costs imposed on lenders or borrowers. .

TMMO: You called yourself a socialist when you entered Congress. Do you think you are the right person to oversee the financial industry?

web: As for my political stance, I want the government to work with the private sector to keep it from going out of control, but to ensure that it operates responsibly for the benefit of all New Zealand citizens. is an important role for government.

tag: CCCFA

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