1. Compliance
  2. Crowdfunding platforms
  3. Your on-going obligations
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Crowdfunding platforms

Your on-going obligations

Licensees have a number of on-going obligations, in addition to the minimum standards and standard conditions set out in their licence. These obligations include notifying the FMA of certain events and providing us with information.

All notifications should be emailed to the FMA at compliance@fma.govt.nz, noting the relevant obligation in the subject line of your email. 

Minimum standards

To become a licensed crowdfunding service provider you'll have to meet and maintain certain minimum standards. The key standards in the Act (section 396) include:

  • Your directors and senior managers (current or proposed) must be fit and proper for their positions
  • Your business must be capable of performing the service effectively and in keeping with your licence conditions
  • We must have no reason to think you're likely to contravene your licensee obligations.

There will also be other important requirements. You can find out more about the minimum licensing standards and conditions in our licensing guide.

Other obligations

As a licensee you'll also have on-going obligations. For example you must:

  • comply with the Fair Dealing obligations in the FMC Act
  • have a written client agreement with investors
  • have arrangements so investors get information to help with share buying decisions
  • complete and submit a regulatory return annually 
  • monitor your compliance, identify material changes of circumstance, and meet reporting obligations.

There will also be a number of other important on-going obligations.

Standard conditions

If we grant you a licence it will contain conditions that support your market services licensee obligations. These will include conditions imposed by the FMC Act and regulations, as well as conditions imposed by the FMA. Find out more about the standard conditions for crowdfunding lending services.

In your application you'll need to demonstrate that you can meet these conditions - or ask us for a limit or variation in your licence.

Find out more about: