Marks&Worth partner Sally Peart said crowdfunding organisations, known officially as Peer-to-Peer Lending Providers, were regulated by the Financial Markets Authority. "If you want to set up a Peer-to-Peer Lending Service so you can act as an intermediary between borrowers and lenders, you must apply for a Peer-to-Peer Lending Service licence." By using a licensed service, companies could rely on an exemption to the Financial Markets Act, meaning they did not need a Product Disclosure Statement. FMA data showed nearly $260 million was loaned to individuals and $29.5 million loaned to businesses through P2P lending in the year to June 30. Often, as was the case in the Ocho money raising, it was a chance to do something for the public good and P2P lending was an efficient way of raising the money.

Source: Otago Daily Times December 03, 2017 16:07 UTC