The Government has passed a new law requiring finance companies to be licensed but they will have until May 2015 to comply - nine years after the first finance company collapsed.
The Non-bank Deposit Takers Act 2013 is expected to come into force by May 2014 and will give the Reserve Bank new powers to detect and intervene should a company become distressed or fail.
Non-bank deposit takers, which include finance companies, building societies and credit unions, will have up to a year after the law comes in to become licensed - a move which requires them to have suitable directors and senior officers.
A Reserve Bank statement said the law would not eliminate the risk of a firm failing but aimed to reduce the risk and prevent significant damage to the financial system.
But Tim Rainey, a lawyer who represents some former Hanover Finance investors, said it was disappointing the legislation would take so long to come into force.