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
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
