Equitise had held a licence since 2014 and it was cancelled on 3 April 2024 (file picture). Photo: 123RF
Crowdfunding investment service Equitise has lost its licence to operate.
The Financial Markets Authority said Equitise, which held a licence since 2014, had materially breached certain market services licensee obligations and no longer met the requirements to hold a licence.
The regulator said Equitise failed to provide financial reporting and agreed upon procedures reporting and was also deregistered from the Financial Service Providers Register, given its history of non-compliance with various legislative and other obligations.
"Despite being deregistered, Equitise continued to provide crowd funding services, facilitating two offers, which it was not able to do lawfully following its deregistration," the FMA said.
In addition, it said Equitise was yet to file its audited 2023 financial statements, which were due 30 October 2023, and also failed to provide an annual agreed upon procedures report and other information.
FMA director Peter Taylor said cancelling a provider's licence was one of the strongest regulatory actions the FMA can take.
"(It) is not a decision the FMA takes lightly. 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," he said.
Equitise's licence was cancelled on 3 April.