ASIC issues first crowd-funding licenses
The Coalition Government has welcomed the decision by the Australian Securities and Investments Commission (ASIC) to issue the first batch of licences that would allow intermediaries to help small firms to raise funds from a crowd of investors.
Minister of Revenue and Financial Services, Kelly O’Dwyer, said that the Government introduced the equity crowdfunding framework in September, 2017, to help remove regulatory barriers enabling Australian firms to get access to the capital they needed.
The Minister also stressed that this new source of funding would create opportunities, especially for small firms in the early growth stage.
The first seven crowdfunding intermediaries licenced by ASIC included:
- Big Start
- Billfolda
- Birchal Financial Services
- Equitise
- Global Funding Partners
- IQX Investment Services
- On-Market Bookbuilds
The eligible public companies would be able to raise up to $5 million in funds through equity crowdfunding, with retail investors able to invest up to $10,000 per issuing company per year.
According to the Minister, he Coalition Government would continue to build on the equity crowdfunding framework and open up a new source of capital for even more Australian small and medium businesses.
AUTHOR
Oksana Patron
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
