1. Compliance
  2. Peer-to-peer lending providers
  3. Your obligations
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Peer-to-peer lending providers

Page last updated: 21 Feb 2019

Your 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. 

Peer-to-peer lending

If you want to set up a peer-to-peer lending service so you can act as an intermediary between borrowers and lenders, you will need to apply for a peer-to-peer lending service licence.

Minimum standards

To become a licensed peer-to-peer lending 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 will 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 lenders
  • give disclosure statements to retail lenders
  • complete and submit a regulatory return annually
  • notify us when a new director or senior manager is appointed by completing a notification form
  • monitor your compliance, identify material changes of circumstances, and meet reporting obligations.

There will also be a number of other important 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 FMA. Find out more about the standard conditions for peer-to-peer 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.

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