FMA Licensing Solutions for New Zealand P2P Lending Services | Pre-licensing Assessment | FMA P2P Lending Licence Application Management | Post-licensing Risk and Compliance Support

We offer a comprehensive set of solutions to help you obtain and maintain a New Zealand Peer-to-peer Lending Service Provider (FMA P2P Lending) Licence issued by the New Zealand Financial Markets Authority, tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• FMA regulated P2P lending platforms' obligations covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our regulatory licensing solutions to help you navigate the complexities of New Zealand P2P lending services' licensing framework in a commercially oriented and goal-focused manner, providing effective support for all stages of the New Zealand P2P lending services' licensing process, including but not limited to the following aspects:

• FMA P2P Lending Licence Guidance: Advising on a wide range of aspects associated with New Zealand P2P lending services' licensing as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:

• Drafting the necessary policies and procedures to help you comply with the New Zealand P2P lending services' licensing requirements and the derivatives markets' regulations
• Developing internal controls to help you meet your obligations under New Zealand P2P lending services' licensing framework

• FMA P2P Lending Licence Application Support: Covering the entire licensing process
• Post-licensing Support: Covering

• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

Service Coverage

This page is about the New Zealand P2P Lending Licence. In New Zealand, entities issuing derivatives must obtain a New Zealand P2P Lending Licence issued by the FMA pursuant to the provisions of the FMCA and its regulations. This licence authorises them to provide financial services to retail clients. We offer comprehensive support for a wide range of FMA P2P lending licence applications, tailored to meet the specific needs of the following businesses:

• Exchange-Traded Derivatives Issuers
• OTC Derivatives Issuers
• Non-Retail Derivatives Offerings
• Swaps Execution Facilities and Clearinghouses
• Forex Platforms
• Financial Service Providers Related to Licensed Derivatives Issuers: This includes investment advisers, brokers, fund managers, and more.

Beyond New Zealand P2P lending services' licensing solutions for retail-oriented businesses, we offer a range of regulatory compliance solutions for P2P lending platforms offering services to wholesale customers, including FSP registration and a range of AML/CFT solutions for P2P Lending Services. You can find more information about our solutions for a derivative issuer's FMA licence below:

 

New Zealand P2P Lending Services’ Licensing Preparation

Pre-licensing Compliance Assurance

Our New Zealand P2P lending services' licensing solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for a P2P lending licence
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the New Zealand P2P lending services' licensing process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your P2P lending licence, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• FMA P2P Lending Licence Application Plan: We help you establish a roadmap to effectively meet the P2P lending licence conditions

 

New Zealand P2P Lending Services’ Licensing Guidance

Selecting the right compliance model is crucial not only for navigating the licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our New Zealand P2P lending platforms' licensing solution covers:

• Compliance Model Selection: To help you best comply with the New Zealand P2P lending services' licensing framework and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the licensing requirements for New Zealand P2P lending platforms and other applicable obligations for New Zeland P2P lending services, keeping in mind your specific circumstances, available resources and business goals.

 

Entering FMA Regulated Environment

We help businesses transition from an unregulated environment to operating under the New Zealand P2P lending services' licensing framework, helping them meet their obligations as a New Zealannd FAP licence holder.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the New Zealand P2P lending services' licensing requirements. Our focus areas for this service include:

• New businesses
• Existing adivsers and wealth plannfers operating in unregulated markets
• P2P lending platforms expanding into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to introduce derivatives trading as a new product.

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain globally compliant with P2P lending platforms' regulatory compliance obligations.

 

P2P Lending Licence and Wholesale Markets

Getting a P2P lending licence may not always be the best fit for all. For example, a retail market expansion may not always align with your goals or the products you offer.

Operating in the wholesale environment can sometimes be a more suitable option. We offer a wider range of risk and compliance management solutions to assist P2P lending platforms that:

• Operate in the wholesale markets
• Operate under exemptions from the New Zealand P2P lending services' licensing regime
• Offer services to sophisticated, eligible, and wholesale investors

We help them comply with the regulatory compliance obligations that are not caught by the New Zealand P2P lending services' licensing regime, but that still have to be addressed and handled, including:

• Advertisement Rules
• Financial Service Provider (FSP) registration
• Fair Dealing Regulations
• Risk Management
• Outsourced Providers' Oversight
• Restrictions on offering services to retail investors without a P2P lending licence (an integral part of the New Zealand FMCA' licensing regime)
• Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws and regulations, including AML/CFT registration with the FMA or New Zealand DIA (depending on the primary nature of business). You can visit our Specialised AML/CFT page for P2P Lending Platforms for more information.
• Data Management Laws and Regulations

FMA P2P Lending Licence Application

We can assist with your FMA P2P lending licence application through ongoing engagement in the New Zealand P2P lending services' licensing process:

• Document Compilation and Review: We compile and review all required supporting documents to support your FMA P2P lending licence application.
• Application Form Completion: We help you complete the forms so that all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your FMA P2P lending licence application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the New Zealand P2P lending services' licensing.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the FMA P2P lending licence application process on track.

 

Resolving P2P Lending Services’ Licensing Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our New Zealand P2P lending services' licensing solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for P2P Lending Licence Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with New Zealand P2P lending services' licensing regime requirements.
• Specific P2P Lending Licence Conditions Compliance: We can help you manage additional conditions imposed on your P2P lending licence, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.
• Licensing Issues Handling: We address common licensing issues encountered during the New Zealand P2P lending services' licensing process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for licensed P2P lending services and platforms. Our services include but are not limited to:

Ongoing Risk and Regulatory Compliance

• FMA Regulated P2P Lending Platforms' Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of New Zealand's P2P lending services' licensing framework and other regulatory compliance obligations. You can visit our Compliance Consultancy Service page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for P2P Lending Platforms.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:
• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option
• Compliance Training Solutions: We offer training programs to different teams on complying with:
• FMA regulated P2P lending platforms'’ obligations for risk, regulatory compliance management, and derivatives trading regulations. You can visit our Compliance Training page for more information.
• New Zealand P2P lending platforms’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for P2P lending platforms. For more information, visit our Specialised AML/CFT Solutions page for P2P Lending Platforms.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.
• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for P2P Lending Licence Holders

P2P lending licence holders are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in the different areas. The list below is not exhaustive:

P2P Lending Licence and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more (as required under condition five of the FMA's Standard Conditions for derivatives issuer licences and the Licensing Application Guide).
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil FMA regulated P2P lending platforms’ obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks.
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the New Zealand P2P lending services' licensing requirements.
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under New Zealand P2P lending services' licensing framework.
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We can help you implement controls to comply with capital adequacy requirements, helping your businesses meet FMA regulated P2P lending platforms' obligations for maintaining required financial resources.
• Liquidity Management Requirements: We can assist you in developing controls to comply with liquidity management requirements.
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under New Zealand P2P lending services' licensing framework.
• Digital Payment Token Services: Where applicable, we can assist in developing controls to comply with regulations for digital payment tokens, cryptocurrencies, and digital assets, including obligations under New Zealand P2P lending services' licensing framework and AML/CFT requirements for transaction monitoring and reporting.
• Investor Classification and Eligibility Controls: We can help you implement processes to assess investor eligibility and classification (e.g. retail vs wholesale/sophisticated), in line with jurisdictional P2P lending limits, onboarding obligations, and investment caps.
• Offer Document and Disclosure Controls: We can help you implement controls for preparing and issuing offer documents or pitch materials, including jurisdiction-specific disclosure requirements under relevant P2P lending or securities legislation.
• Credit Intermediation and Licensing: We can help you prepare controls and procedures to manage credit licensing risks where your platform activities may fall within the scope of credit assistance or licensing activities.

 

P2P Lending Licence and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with New Zealand P2P lending services' licensing obligations for overseeing outsourced services (as required under condition two of the FMA's Standard Conditions for for P2P lending services' licensing), also covering related obligations under AML/CFT compliance, ISO requirements, and more
• Structures for Governance: We can help you establish effective governance structures to comply with FMA regulated P2P lending platforms' obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business (as required under condition six of the FMA's Standard Conditions for for P2P lending services' licensing).
• Senior Management Accountability: We can help you comply with FMA regulated P2P lending platforms’ obligations for senior management and key staff conduct and competence (as required under FMCA, section 396c and the FMA's P2P lending licence conditions).
• Maintaining Operational Resilience: We assist in developing continuity plans to meet FMA regulated P2P lending platforms’ obligations for operational resilience, helping critical business services withstand disruptions.
• Managing Technology Risks: We provide guidance on technology risk management obligations under New Zealand P2P lending services' licensing framework.
• Platform Access and Due Diligence on Borrowers: We can help you develop onboarding, due diligence, and monitoring controls for businesses or issuers raising funds through your platform, including AML/CTF obligations, background checks, and suitability assessments.
• Dual-Sided Platform Conflict Controls: We can help you develop documented procedures to identify and oversee conflicts of interest where your platform facilitates both lending and borrowing activity.
• Contract Structure and Licensing Exposure: We can help you assess your lending structure and document controls where nominee, trust-based, or custodial arrangements may trigger additional licensing authorisations.

 

P2P Lending Licence and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for FMA regulated P2P lending platforms’ obligations to maintain fair and transparent market conduct, including preventing manipulation and insider trading.
• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients.
• Standards for Conduct and Disclosure: We can help you comply with New Zealand P2P lending services' licensing standards for conduct and disclosure.
• Protection of Client Assets: We can help you comply with New Zealand P2P lending services' licensing obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients.
• Advertising and Communications Oversight: We can help you develop controls for your marketing and promotional materials to ensure compliance with restrictions on advertising P2P lending offers, including social media monitoring and fair representation of investment risks.

 

P2P Lending Licence and Resource Management Obligations

We can help you comply with the following requirements of the New Zealand P2P lending services' licensing framework:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:

• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Key Personnel Assessment: We can help you assess the skills, qualifications, and experience of key personnel to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, and FMCA regulations.
• Competence and Accreditations of Advisors and Representatives: We can advise you on certifications and continuing professional development (CPD) requirements for compliance professionals and senior management.
• Representative Vetting: We can help establish a framework for assessing the competence and suitability of advisors and representatives before appointment.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.
• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on licensing obligations, market integrity, and client interaction standards.

• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.
• Investment Cap and Transaction Limits Controls: We can help you implement automated and manual controls to monitor investor contribution limits, deal caps, and maximum investment thresholds required by the licensing regime.
• Additional Licensing Triggers: We can help you assess your platform structure and prepare controls to address licensing triggers where pooled funds or trustee arrangements may require authorisation to operate a managed investment scheme or custodial service.

 

P2P Lending Licence and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • New Zealand P2P Lending Services' licensing obligations (as required under condition four of the FMA's Standard Conditions for P2P
    lending services' licensing and section 412 of the FMCA).
  • New Zealand P2P Lending Platforms’ AML/CFT obligations (SARS, SMRS, prescribed transaction reports PTRs for cross-border and cash transactions and other reporting obligations)
  • FMA Regulated P2P Lending Platforms' obligations under financial market conduct regulations
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the New Zealand P2P lending services' licensing framework, applicable operational standards, and more.

 

Jurisdictional Coverage of Our New Zealand P2P Lending Services’ Licensing Solution

We can help you apply for New Zealand's FMA P2P lending licence or its equivalents in the following jurisdictions:

• Australia: For more information on the Australian equivalent of the FMA P2P lending licence, the P2P lending Australian Credit Licence, you can visit our P2P lending ACL page.
• Singapore: For more information on the Singaporean FMA P2P lending licence equivalent – Capital Markets Services (CMS) Licence for P2P lending services, you can visit our Singapore P2P Lending Platform Licence page.
• United Kingdom: For more information on the United Kingdom FMA P2P lending licence equivalent – FCA Authorisation for Regulated P2P Lending Services, you can visit our FCA Authorisation page for P2P platforms.
• Other Jurisdictions: We also offer licensing solutions for P2P lending platforms and service operators in prominent financial centres and offshore tax havens, including but not limited to:

• Cayman Islands - CIMA Registration
• Bermuda - Digital Asset Business Licensing
• Gibraltar - DLT Provider Licensing
• Isle of Man - Financial Services Licensing
• Malta - Financial Institution Authorisation