Financial Markets Conduct Regulations 2014

195 Condition for intermediaries to notify FMA of suspected contraventions of Part 2 of Act or of investment cap


A market services licence for a provider of a crowd funding service or a peer-to-peer lending service is subject to a condition that the provider must notify the FMA, in accordance with subclauses (2) and (3), if the provider knows or suspects that an issuer that uses the service has committed, is committing, or is likely to commit—


a significant contravention of Part 2 of the Act (which relates to fair dealing) in connection with the use of the service; or


a contravention of the $2 million aggregate limit referred to in clause 7 of Schedule 8.


The provider must give the notice immediately after knowing or suspecting the person has committed, is committing, or is likely to commit the contravention.


The notice must include—


the issuer’s name and contact details; and


the obligation to which the known or suspected contravention relates; and


the facts supporting the provider’s view relating to the known or suspected contravention; and


any supporting evidence for that view.