ASIC facilitates crowd-sourced funding by public firms
The Australian Securities and Investments Commission (ASIC) has issued new guidance for public companies and crowd-funding platform operators on how to use the new crowd-sourced funding (CSF) regime.
According to the regulator, the guidance would be expected to provide support to public companies and crowd-funding platform operators in complying with their obligations under the CSF regime, particularly as many of these companies did not have experience in making public offers of their shares.
ASIC also published a template CSF offer document to help companies prepare their CSF offers.
ASIC also issued separate guides for companies seeking to raise funds through CSF and the second one that would assist crowd funding platform operators (‘intermediaries’) seeking to provide a crowd-funding service.
ASIC’s commissioner, John Price, said: “Crowd-sourced funding provides an opportunity for small to medium-sized businesses to access an alternate source of capital without the regulatory burden of traditional fundraising.
“ASIC’s new guidance will help public companies and crowd-funding platform operators comply with their obligations under the CSF regime, while supporting investor confidence.”
AUTHOR
Oksana Patron
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
