The issuing of New Zealand’s first equity crowd funding licenses could spark growth for many small to medium sized businesses.
Equity crowd funding allows business to access capital by selling shares to individuals thru a regulated platform, avoiding more traditional bank lending.
PledgeMe and Snowball Effect are the first providers to receive licenses from the Financial Markets Authority.
FMA director of compliance Elaine Campbell says whether the service takes off depends on New Zealander’s appetite to use it, but it’s an area of potential growth.
We wrote back in June how New Zealand is striving for global recognition as FMA chief applauds overhaul of regulatory infrastructure. For FX market players, New Zealand was until very recently a jurisdiction in which very scant financial markets regulation existed, with many firms having not been required to have an actual presence in New Zealand.
The FMA, by showing they are now serious about policing and regulating all parts of the alternative financial landscape on a first class level should help re-invigorate the investment sector of New Zealand as a safe but business friendly jurisdiction for all.