Financial Markets Conduct Regulations 2014

197 Condition for provider of crowd funding service to obtain investor confirmation

(1)

A market services licence for a provider of a crowd funding service is subject to a condition that the provider must obtain from each investor, in accordance with subclauses (2) and (3), a confirmation to the following effect:

“

I confirm that I have seen the warning statement about crowd funding and—

  • I understand that equity crowd funding is risky and I may lose my entire investment; and

  • I confirm that I could bear that loss without suffering undue hardship; and

  • I understand that the usual legal protections do not apply to this investment; and

  • I understand that I may not be given the same information as is usually required by New Zealand law for investments.”

(2)

The confirmation must be obtained in writing in a separate document or, if it is obtained by electronic means, through a process by which it is obtained separately from the agreement to use the service.

(3)

The confirmation must be obtained by the provider before the investor is authorised to use the service.