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ARTICLE · 20 JULY 2017

Part IV: Need Funding? Ask the crowd!

Holley Nethercote
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Public companies can raise up to $5 million a year from a number of individual investors through an online CSF platform.

AustraliaFinance and Banking
Hannah MacPherson (Formerly With Holley Nethercote)
Hannah MacPherson (Formerly With Holley Nethercote)
Grant Holley
Grant Holley
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The Corporations Amendment (Crowd-sourced Funding) Act 2017('the Act') received royal assent on 28 March 2017 and will take effect on 28 September 2017. The Act has established a regulatory framework for crowd-sourced funding ('CSF'), allowing public companies to raise up to $5 million a year from a large number of individual investors through an online platform.

The diagram below illustrates how the regime will work. Our previous blog Part III: Need Funding? Ask the Crowd! explains some of the basic components of the framework in greater detail.

Source: http://download.asic.gov.au/media/4302069/attachment-1-to-cp289-published-22-june-2017-draft-regulatory-guide.pdf

This framework has recently been developed further through the release of the Corporations Amendment (Crowd-sourced Funding) Regulations 2017 (Cth) ('Regulations') and two consultation papers by ASIC. The consultation papers give guidance to both public companies and intermediaries in using

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