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Looking to crowdfund? Speak to ASIC

Looking to crowdfund? Speak to ASIC

22 Sep, 2017 - 2 min read

The Australian Securities and Investments Commission (ASIC) have announced new guidance for public companies and crowd-funding platform operators to help them comply with their new crowd-sourced funding (CSF) regime.

The new CSF regime will commence on 29 September 2017, and the criteria for companies using it includes:

Investors are limited to invest $10,000 per company per 12-month period
Companies may raise up to $5 million in any 12-month period
Companies must have assets and annual turnover of $25 million or less

What is crowd-sourced funding?

According to ASIC’s crowdfunding regulatory guide, “crowd-sourced funding involves a company raising funds—usually through an online intermediary—from a large number of individual investors who make relatively small financial contributions to the company.”

It’s an invaluable tool for start-ups and small to medium sized companies to access capital from investors.

Previously, ASIC has stated that crowdfunding platforms must play a ‘gatekeeper’ role for intermediates operating platforms for CSF offers.

ASIC Commissioner John Price has advised that ASIC’s new guidance will “help public companies and crowd-funding platform operators comply with their obligations under the new CSF regime, while supporting investor confidence”.

The CSF regime forms part of the Government’s FinTech Priorities, released in March 2016, to help “promote Australia’s FinTech capability by supporting the evolution of our FinTech start‑ups and innovators to develop, test and globally launch their innovative financial products and services.”

Disclaimer

This article is over two years old, last updated on September 22, 2017. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent investment funds articles.

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Alex Ritchie

Personal Finance Editor

Alex Ritchie is a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.