By Gareth Vaughan
The Financial Markets Authority (FMA) expects up to 10 internet based money raisers for businesses to emerge under new laws that come into effect next April.
Speaking at the regulator's quarterly stakeholder market update last week, Sue Brown, the FMA's head of strategy, innovation and engagement, said she was excited by the prospect of crowd sourcing and peer-to-peer lending taking off in New Zealand.
The recently passed Financial Markets Conduct Act will establish a licencing regime for the two forms of internet based funding from April 1 next year. Brown noted this was part of the Government's business growth agenda to promote more vibrant capital markets.
"This is looking to remove the barriers to entry right at the bottom of the financial markets," Brown said.
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