Crowd funding represents an untapped source of funding
for projects and businesses trying to get off the ground, but
regulatory traps lurk for those who are not aware.
Crowd funding is the latest confrontation between the
borderless, fast-paced world of social media and traditional
regulation. It is a burgeoning industry both in Australia and
worldwide, and in light of the Australian Securities and
Investments Commission's (ASIC) recent guidance note on crowd
funding, practitioners need to be aware of the potential issues
that could arise when acting for participants.
In particular, it is important to understand the limitations
that the current regulatory framework places on crowd funding
activities in Australia, as well as strategies that might be
available to aid clients. Practitioners should also understand
overseas developments in crowd funding regulation, in order to
anticipate better the direction of possible law reform at home.
