Licensees 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. You can notify us when a new director or senior manager is appointed by completing a notification form.

In your application, you'll need to demonstrate how you can meet the minimum standards and conditions for your licence - or ask us for a limit or variation using the forms below.  This is very important because when a licence is granted, they contain conditions that support your licensee obligations. They include conditions imposed by the FMC Act, the regulations, and any conditions imposed by the FMA.

As a licensee, you will also have on-going obligations. For example, you must:

• have a written client agreement with lenders
• give disclosure statements to retail lenders
• monitor your compliance, identify material changes of circumstances, and meet reporting obligations.

There will also be a number of other important obligations.

Normally if you want to borrow money direct from the public, the FMC Act requires you to issue a product disclosure statement.

• You do not need to prepare these documents if you are using a licensed peer-to-peer lending provider. Instead, you will provide information about your loan request to your provider so they can present your request for investors to read.
• Licensed providers are not obligated to accept you as a borrower. They will run some checks on you and if you've got a bad credit history they may decide they won't help you find money.
• If you are accepted, you will become a client of the peer-to-peer lending service. The provider will ask you to sign a client agreement that details what you need to do so the provider can monitor and check you.
• The service provider can charge for their services. See more

All FMC reporting entities must comply with the following:

• Keep proper accounting records to assist with the preparation of compliant financial statements. Records must be kept in English and a copy must be kept in New Zealand.  
• Prepare financial statements for the group's operation.  Financial statements must comply with generally accepted accounting practices in New Zealand.
• Ensure that financial statements are audited by a licensed auditor or registered audit firm. 
• Lodge financial statements and the auditor’s report with the Companies Office within 4 months of the balance date. See more

The FMC Act sets out minimum compliance standards of behaviour for people operating in the financial markets.

Fair dealing in advertising and communications – crowdfunding and peer-to-peer lending

The fair dealing requirements apply to all aspects of licensed crowdfunding and peer-to-peer lending services. This guidance only focuses on communications made for the purpose of promoting, or informing customers about, an offer of financial products or financial services.

 See more

The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) imposes several obligations: 

• You must provide a written risk assessment of the money laundering and financing of terrorism activity you could expect in the course of running your business.
• You are required to implement an anti-money laundering and countering financing of terrorism programme that includes procedures to detect, deter, manage and mitigate money laundering and the financing of terrorism.
• You are required to appoint a compliance officer to administer and maintain your programme.
• You are required to perform due diligence processes on your customers. This includes customer identification and verification of identity.
• You are required to report suspicious transactions. 

The FMA supervises designated business groups (DBGs) and reporting entities listed in Section 130 of the Act. See more