Under the FMC Act, you must be licensed to make a regulated offer of derivatives. A regulated offer includes any offer of derivatives when disclosure must be made to one or more investors. See section 388 of the FMC Act for definitions of what is a financial product and who is derivative issuer.
Before you apply for a licence
There are some things you can do to ensure your application runs as smoothly as possible:
review the licensing guides and documents below as they contain all the information you need to know so you can complete and submit your application
set up your RealMe® login details early
focus on the minimum standards – we will assess your business against them when processing your application
PART A This guide contains information about the licensing process and includes many FAQs you might have and explains how to use our online application form(currently unavailable); create a RealMe® identity, if you don't already have one and pay your licensing fee.
PART B This guide contains all the specific questions you’ll be asked and the minimum standards you’ll need to show you meet. It also details the information and supporting documents you’ll need to provide when you submit your application.
Standard conditions for derivatives issuer licences
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.
Licensing overview report 2017: what you need to know to meet your licence obligations.
It is helpful to read the Licensing overview report alongside the guide to the FMA’s view of conduct. Together, these documents give a good indication of our areas of future focus, our overall approach to monitoring; and what we expect of licensed providers of financial products and services.
We understand that some people may not be able to print, sign and scan documents at the moment, due to the COVID-19 alert levels. If that is the case for you:
If you have an electronic signature, please affix that to the signature block and return the form to us.
If you do not have an electronic signature, rather than sign the document, please read it carefully, fill in all of the text boxes and then email it back to us with the following text in your email: “I confirm that, when making the personnel change(s) notified in this form, we have followed our internal policies and processes and maintain the fit the proper standards for licensing.”
To notify us of a change to your key people and managers as required by the licensing standard conditions, please send an email to firstname.lastname@example.org outlining what the changes are and the qualifications and experience of the new or replacing personnel, e.g. attach their c.v.
Note that this is a standard condition for the following licence types: DIMS, crowdfunding, independent trustee (for corporates), MIS and peer-to-peer lending.
Learn more about derivatives and derivative issuers