The
Financial Markets Authority (FMA) of New Zealand has been actively combating
fraudulent activity and scams in the country’s financial markets. In a series
of recent actions, the regulator has taken steps to protect consumers and
maintain market integrity, by cancelling one crowdfunding services license and
issuing warning against a cryptocurrency company.
According
to the Wednesday’s update, FMA cancelled the crowdfunding services licence of
Equitise Pty Ltd, an equity crowdfunding service provider licensed since 2014.
The cancellation came after Equitise materially breached certain market
services licensee obligations and failed to meet statutory requirements.
The company
failed to provide its financial reporting and agreed upon procedures reporting,
and was deregistered from the Financial Service Providers Register (FSPR) for
failing to file its annual confirmation within the required timeframe.
“Cancelling
a provider’s licence is one of the strongest regulatory actions we can take and
is not a decision the FMA takes lightly,” stated, the FMA Director of
Specialist Supervision and Response, Peter Taylor, emphasizing the severity of
the action. “Financial service providers must make sure they are able to meet
the legislative requirements and act lawfully. The rules are there to protect
consumers and to ensure market integrity.”
