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ARTICLE · 20 MARCH 2017

Crowd sourced funding soon to become a reality

Sparke Helmore Lawyers
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CSF will soon become law, to assist public company start-ups and small to medium-sized businesses in need of capital.

AustraliaCorporate/Commercial Law
Marianne Robinson
Marianne Robinson
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Help is nearly here for public company start-ups and small to medium-sized businesses in need of capital, as the crowd sourced funding (CSF) regime edges closer to becoming law in 2017. The Corporations Amendment (Crowd Sourced Funding) Bill 2016 (Cth) has passed the House of Representatives and entered the Senate. The Senate Economics Legislation Committee Report was tabled for consideration on 13 February 2017 and the Committee recommended the Bill be enacted. A dissenting report was tabled by the Labor Senators who support the concept but who wanted the Bill amended to broaden the range of businesses able to access the CSG regime.

Once passed the CSF regime will bring a new form of investment for businesses—allowing companies to reach a broader group of potential investors more quickly and accumulate capital from individuals that they traditionally wouldn't be able to reach—as well as a new Australian financial services (AFS) licence for licensees acting as CSF

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