Peer-to-peer lenders are effectively precluded from operating in New Zealand given the regulatory regime. Licensing is intended to introduce a regulatory regime proportionate to the risks that they pose. The licensing criteria will look at the character and background of the key individuals involved, and also a limited assessment of organisational processes.
This is welcome news for what could be a niche fledgling market in New Zealand. However, as tends to be the nature with securities law, the devil may lie in the yet-to-be-determined detail.