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ARTICLE · 19 APRIL 2018

Equity crowd source funding: Part 2 - Regulatory update

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The Regulations have been promulgated and the government proposes to extend the CSF Regime to proprietary companies.

AustraliaCorporate/Commercial Law
Swaab Author
Swaab Author
Nicholas Mark
Nicholas Mark
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Australia's equity crowd source funding regime (CSF Regime) came into effect in Australia on 29 September 2017. The relevant provisions now sit within Part 6D.3A of the Corporations Act 2001 (the Act) and of the Corporations Regulations (2001) (the Regulations).

The CSF Regime offers an opportunity for start-ups and small businesses to raise funds from retail investors without a detailed and extensive disclosure document or by relying on the so-called "20/12 rule" or "small scale offering" exemption.1 Similar regimes operate in the UK, New Zealand, Canada and USA.

Our previous article covered the topics including the eligibility criteria to be satisfied by a company seeking to raise equity capital via the CSF Regime.

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