Foss welcomes first crowdfunding licence...

Commerce Minister Craig Foss has welcomed New Zealand’s first equity crowd-funding and peer-to-peer lending licences.

“The Financial Markets Conduct Act, passed in August last year, made crowd-funding and peer-to-peer lending possible," Foss says.

"It is fantastic to see the first licences come through."

The Financial Markets Authority issued the licences after a thorough assessment of each organisation’s licencing application.

“New Zealand needs more innovative businesses to increase economic growth – this is one way for early-stage and growth companies to source the risk capital they need to flourish,” Foss adds.

“We are leading the way in the Asia-Pacific region with a robust framework that will give these services the best chance of succeeding.”

Crowd-funding and peer-to-peer service providers are not required to prepare prospectuses or investment statements before fundraising from the public.

“These initiatives are part of the Government’s Business Growth Agenda to build New Zealand’s capital markets and drive business growth, exports and jobs,” Foss adds.