Effective date: 18 July 2026. This page records Carbon Trader’s understanding of the regulatory position of the platform as at that date, and the operating practices we maintain to comply with it. It is our own good-faith statement, prepared with reference to current legislation and published government policy. It is not legal advice to any user, and it does not replace users’ own professional advice. Regulation of the New Zealand carbon market is evolving, and we review and update this page as the law changes.
1. Who operates this platform
Carbon Trader is operated by Trend Enterprises Limited (NZBN: 9429048521130), trading as Carbon Trader®. Trend Enterprises Limited is registered on the Financial Service Providers Register, number FSP1008496.
Registration is not a licence and not an endorsement. Registration on the Financial Service Providers Register does not mean that Carbon Trader is licensed, approved, audited or endorsed by the Financial Markets Authority or any other New Zealand government agency, and we make no such claim.
2. The legal character of NZUs and this marketplace
New Zealand Units (NZUs) are units issued under the Climate Change Response Act 2002. Our understanding, consistent with current law and published government policy, is that a spot NZU - an NZU bought or sold for prompt settlement - is not a “financial product” as defined in section 7 of the Financial Markets Conduct Act 2013 (FMC Act): it is not a debt security, an equity security, a managed investment product or a derivative. It is tradeable property, comparable to a commodity.
Because a “financial product market” under Part 5 of the FMC Act is a facility for trading financial products, our understanding is that a marketplace for spot NZU transactions is not a financial product market, and no market-operator licence under the FMC Act is required for it or currently held. There is at present no FMC Act licence category applicable to a spot NZU marketplace.
How we ensure this remains true. We deliberately operate inside that boundary:
- Every trade on the platform is a spot transaction settled promptly through managed escrow: the buyer’s cleared funds and the seller’s NZUs are both confirmed before settlement completes.
- We do not offer derivatives, futures, forwards, options, contracts for difference, term-settled or deferred-settlement trades, margin trading or leverage over NZUs or any other credit.
- We do not pool user funds or credits into any collective or managed investment. Forestry managed sales and broker services are agency services carried out on the owner’s own credits and instructions.
If we ever propose to offer products outside this boundary, we will first obtain legal advice and any licence that the FMC Act then requires.
3. Fair dealing and the Financial Markets Authority
Following recent Government decisions on Emissions Trading Scheme market governance, the fair dealing provisions in Part 2 of the FMC Act apply to conduct and representations connected with trading NZUs, with the Financial Markets Authority as the responsible conduct regulator (a role previously performed by the Commerce Commission under the Fair Trading Act 1986). Carbon Trader accepts and welcomes that oversight.
How we comply. We do not make misleading or deceptive statements, or unsubstantiated claims, about NZUs, prices, liquidity, expected returns, the safety of funds or credits, or our own regulatory status. Our fees are published on the fee schedule, our risks are described in the Risk Disclosure Statement, and our marketing communications are informational and factual.
4. No financial or investment advice
Carbon Trader provides platform, brokerage, escrow, settlement coordination, market data and evidence services. We do not provide recommendations or opinions about whether anyone should buy, sell or hold NZUs or any other credit, and nothing on this platform - including Market Pulse and other market information - is financial, investment, legal, tax or accounting advice. Users should obtain their own professional advice.
5. Not a managed investment scheme
Carbon Trader does not pool user money or credits, does not promise or imply returns, and does not manage a portfolio on any user’s behalf. The Carbon Trader Digital Wallet is a platform ledger and dashboard record: it is not a bank account, deposit product, stored value facility or managed investment product (see clause 16 of our Terms).
6. Client money, escrow and custody
Funds held in Carbon Trader-managed escrow are held for transaction settlement only. NZUs shown in custody wallets are backed 1:1 by NZUs held in Trend Enterprises’ NZETR account, and users can withdraw their units to their own registry account. We do not take deposits, do not pay interest on settlement funds, and do not promise any return. Full details are in the Client Money, Escrow and Custody Controls policy, and our insurance position is disclosed in the Platform Disclosures.
7. Anti-money laundering and countering financing of terrorism
Because Carbon Trader holds client funds in escrow and transfers value in the course of settlement, we treat ourselves as subject to the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, for which the Department of Internal Affairs is the relevant supervisor.
How we comply. We maintain a written risk assessment and AML/CFT programme under the Act, formally adopted by director resolution on 18 July 2026, administered by a designated compliance officer and subject to periodic independent audit. Customer due diligence and identity verification are delivered through Sumsub - government-ID document checks, biometric liveness, KYB and beneficial-ownership identification for entities, and sanctions and PEP screening at onboarding and on an ongoing basis - with enhanced due diligence, source-of-funds and source-of-credit checks where risk requires, ongoing account and transaction monitoring, and the reporting obligations that apply to reporting entities. Our published statement is the AML/CFT and KYC Statement.
8. FSP registration and dispute resolution
Trend Enterprises Limited maintains its registration on the Financial Service Providers Register for the services it provides, and is a member of the Financial Dispute Resolution Service (FDRS), an approved dispute resolution scheme (fdrs.org.nz). Complaints are handled under our Complaints and Dispute Resolution Policy, and unresolved complaints may be referred to FDRS at no cost to the user.
9. Regulatory change
The Government has announced further Emissions Trading Scheme market-governance reforms, including information-gathering powers for the Environmental Protection Authority over NZU trading, and has previously consulted on options such as licensing of NZU trading facilities and regulation of NZU advice. Carbon Trader monitors this work programme, including the legislation expected to carry it, and will comply with any new obligations that apply to the platform - including licensing, if it is introduced. Where practical, we engage constructively with regulators and officials on the design of these rules.
10. Declaration
To the best of our knowledge, and as at the effective date above, Carbon Trader is operated in full compliance with the obligations that apply to it under New Zealand law as described on this page. We keep this position under review with professional advisers, and we will update this page if the law, our services, or our understanding changes.
Contact
For questions about this page, contact Carbon Trader at info@carbontrader.nz.