New Zealand Commerce Minister Craig Foss has announced that Cabinet has approved regulations for crowd funding and peer-to-peer lending as part of the Government’s financial market overhaul.
Mr Foss has announced that there will be no investor caps for equity crowd-funding, other than the previously announced US$2 million cap that a company can raise through crowd funding each year.
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Foss said: "Crowd funding provides a platform where contributors receive shares in the businesses they invest in, providing a new avenue for early-stage and growth companies to source the risk-capital they need to grow."
Under the new regulations, offers engaging in equity crowd funding and peer-to-peer lending will no longer need to prepare a prospectus or an investment statement before fund raising from the public.
Foss added: "This is an exciting development for both start-up businesses and investors. With the regulations coming into force on 1 April, New Zealand will lead the Asia-Pacific region is the development of crowd-funding regulation.
"Crowd-funding is one of several changes the Government is making to support confident and informed participation in New Zealand’s financial markets.
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By GlobalData"Implementing the Financial Markets Conduct Act is a key component of the Government’s Business Growth Agenda to build New Zealand’s capital markets and drive business growth, exports and jobs."
