Equitise co-founders Chris Gilbert (left) and Jonny Wilkinson (right) met at The University of Sydney, according to their website.
Equitise co-founders Chris Gilbert (left) and Jonny Wilkinson (right) met at The University of Sydney, according to their website.
After 20 years of helping start-up businesses raise millions in funds, Equitise has lost its crowdfunding licence after launching offers to investors while unregistered and failing to meet other regulatory requirements.
The Financial Markets Authority made the decision on April 3, after the Australian company did not provide its latest annual financial statements, nor a report outlining its agreed-upon procedures.
The cancellation followed what the FMA called a history of non-compliance, including its deregistration from the Financial Service Providers Register in August last year, after which the company unlawfully launched two funding campaigns.
“Cancelling a provider’s licence is one of the strongest regulatory actions we can take and is not a decision the FMA takes lightly.” FMA director of specialist supervision and response Peter Taylor said in an emailed announcement about Equitise.
“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.”
Equitise’s platform was currently advertising two deals to investors, for Australian businesses Allied Beverages and Botanic Bioplastics.
Previous New Zealand deals included raising $2.9 million for medicinal cannabis company Greenfern Industries from more than 1200 investors, before it listed on the New Zealand Stock Exchange in 2021.
More recent offers included raising $510,500 from 269 investors for cast-iron cookware company Ironclad Pan Co, and $1.1 million from 141 investors for the electric motorcycle maker FTN Motion.
Investors’ funds were held by Equitise in a bare trust structure, details online read.
“Investors are entitled to the same rights as they would directly on the share register.”
Electric motorcycle company FTN Motion raised $1.1 million from investors on the Equitise platform.
Equitise was co-founded by Jonny Wilkinson and Chris Gilbert who met at The University of Sydney, according to its website, and backed by venture capital investor Tony Heap, according to a document filed with New Zealand Treasury in 2014.
The business began in New Zealand, gaining a licence in 2014, where equity crowdfunding was legal before Australia until 2017.
Its current directors were all based in New South Wales, according to Companies Office records.
Equitise has historically repeatedly failed to file its financial statements and anti-money laundering and countering of financing terrorism (AML/CFT) reports with the regulator on time and has previously been ordered to pay fines of $7500.
It was ordered by the FMA to develop a compliance plan in 2022.
Equitise could not be contacted at its New Zealand-listed phone number on Wednesday.
