Peer-to-peer lending involves a person issuing a debt security to another person, generally for personal, charitable, or small business purposes.
A peer-to-peer lending service provides a facility (such as a website) where offers for debt securities (such as loans) can be made. The primary purpose of the peer-to-peer lending service is to match lenders (otherwise known as investors) with borrowers.
SD1.0 Certificate of compliance and authority to apply (applicant or their authorised person)
The fees payable to the FMA when you apply for a peer-to-peer lending service licence under the FMC Act is $6,238.75 (incl. GST). The fee includes 40 hours of assessment hours. We may change an additional fee at the FMA hourly rate where our assessment of an application exceeds the included number of hours. If an additional fee is changed for your application, we will let you know in advance and provide you with a reason for this. We may also invoice you for any costs of external advice or assistance.
The Financial Markets Authority (Levies) Regulations 2012 (the Regulations), as amended in 2020, set out the levies payable by industry. The levies are set by the Ministry of Business, Innovation, and Employment (MBIE).
The FMA receives funding from the Crown and a proportion of our costs is recouped from industry through levies.
A financial markets participant falls within one or more levy ’class’, depending on what financial services they provide.
We have discretionary power to waive a levy (in whole or part). We will only do so if we are satisfied that the circumstances or characteristics of the financial markets participant are exceptional when compared with the circumstances or characteristics of others in the same class, so that it would make it inequitable for the person to pay the levy. The threshold is deliberately high.
The waiver power is not intended to be used to revisit settled policy positions.
Once we receive a waiver application and the fee, we will assess it. If we decide to grant the waiver, we must notify our decision in the Gazette, and publish the decision and reasons for it on our website.
You will need to email the following information to [email protected] with the subject line ‘Levy waiver application’.
You can pay by electronic deposit or internet banking. Payment can be made by applicants or law firms making applications on behalf of their clients.
The person paying the application fee must be the person who pays the subsequent fees and costs. For example, if a law firm pays the application fee, that law firm must also pay any additional fees and costs.
We recommend if law firms apply for waivers on behalf of their clients, the parties discuss and agree who will be responsible for paying the FMA’s fees before submitting a waiver application.
|Payment option||How to pay||Additional information|
|Electronic deposit or internet banking||Where bill pay is available please select ‘Financial Markets Authority - Other'
Otherwise, our bank details are:
Account name: Financial Markets Authority
Account number: 03-0584-0198005-000
|To ensure we process your payment correctly please provide the following information:
Particulars: Payer’s name*
Reference: Applicant’s name
You do not need to forward a hard copy of your application if paying electronically
* This is the name of the person paying the application fee. This person will be invoiced for any subsequent fees and costs. Payment by credit card is not available for this application process.
It is the responsibility of each financial service provider to ensure they are registered for the service(s) they provide and have paid the appropriate levies. As part of their online annual confirmation to the Registrar, they must select all of the applicable classes to determine the levies payable and confirm the information they have provided is true, correct and complete.
Under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (the FSP Act) it is an offence to:
These offences could result in a fine of up to $100,000 and/or imprisonment for individuals, and a fine of up to $300,000 for businesses.
It is also an offence under the FSP Act to fail to notify the Registrar if any of the details contained on the FSPR are no longer correct. Failure to notify could result in a fine of up to $10,000.
Peer-to-peer lending service licensees are required to notify the FMA when there has been changes to directors, senior managers and 'key personnel'. The following notification form should be emailed to [email protected].
You will also need to notify any change of directors to the Registrar of Companies Office, and any change of senior managers and key personnel to the Registrar of Financial Services Providers.
Peer-to-peer lending service licensees are required to submit an annual regulatory return to the FMA. Regulatory returns provide us with up-to-date information to help us to understand the businesses that we regulate and to determine the focus and priority of our monitoring activities.
Licensees are now able to submit their regulatory returns online at services.fma.govt.nz.
To complete the return, you will need to log into Real Me. After logging in you should select “Complete a regulatory return” and enter the FSPR number of the entity the return is being completed for. Please follow the instructions included in the form to complete the return, you may save and come back to the form at any time.
If you have any questions on completing the new form, please contact the FMA on [email protected].
Licensees obligations include notifying the FMA of certain events and providing us with information. All notifications should be emailed to the FMA at [email protected], noting the relevant obligation in the subject line of your email. Refer to the standard conditions section for information of what needs to be notified to the FMA.
In addition to the obligations imposed by licence conditions, licensees are also required to comply with other obligations on an ongoing basis. These obligations will depend on the nature of the services provided by a licensee and any applicable legislation. The following obligations apply to licensed peer-to-peer lending services:
All FMC reporting entities must comply with the following:
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) imposes several obligations:
A client money or client property service provider is a financial services provider who holds, transfers or makes payments with client money or property, this includes custodial services. Under the FMC Act, providers must comply with disclosure and conduct obligations. These obligations apply whether services are provided to retail or wholesale clients. View Client money or property services provider obligations.
If you provide financial advice to retail clients as part of your service, you must either hold a Financial Advice Provider (FAP) licence or be engaged to operate under a FAP licence, and you will need to fulfil a number of duties. These duties aim to ensure New Zealanders have access to quality financial advice and it helps to build public confidence in advisers. Download the Meeting your obligations factsheet PDF.
The FMA has wide powers to exempt persons or transactions from some financial markets law requirements. These powers enable us to remove rigidities in the law and ensure requirements for businesses are reasonable and cost-effective. Find out more about exemptions you can apply for under the FMC Act and current exemption notices.
The FMA publishes guidance that outlines our expectations and how we will monitor certain activities. The following guidance applies to licensed peer-to-peer lending services.
The aim of this guidance is to ensure licensed crowdfunding and peer-to-peer lending platforms understand their obligations when advertising or communicating with customers. View Fair dealing in advertising guidance.
This guidance contains information to help peer-to-peer lending service licensees understand and meet minimum licensing standards in relation to publishing default rate information. It sets out what ‘default’ means, when licensees must comply with the standard, and guidelines on how to publish fair, clear and transparent information. View the publishing default rate information sheet.
This information sheet explains the FMA’s expectations for a compliance assurance programme (CAP). It will be useful for entities holding or applying for a licence under the FMC Act. View the CAP guidance.
It gives guidance on what we will focus on when examining how licensed financial services providers demonstrate good conduct, and how they meet their governance and management responsibilities. View the Guide
Compliance Assurance Programmes
Entities licensed under the Financial Markets Conduct Act 2013 (FMC entities) are required to have adequate and effective arrangements for challenging and testing their own compliance functions, framework and controls. To meet this obligation, FMC entities are required to have a CAP in place.
Meeting your obligations under the new financial advice regime
If you provide regulated financial advice to clients under the new regime, you will need to fulfil a number of duties. These duties aim to ensure all New Zealanders have access to quality financial advice, and to help build public confidence in advisers – a good thing for everyone.