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
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
