Regulation Of Fundraising On The Internet

Introduction

The use of the Internet for all forms of commercial and social interaction will continue to grow at an astounding pace. This note briefly summarises how the Australian Securities and Investments Commission (ASIC) has to date responded to the use of the Internet or e-commerce for fundraising activities.

The ASIC issued a media release on 10 February 1999 entitled "ASIC Regulation of Fundraising in the Internet". The releasE heralded ASIC Policy Statement 141 "Offers of Securities over the Internet" (PS141). PS141 has been described as "...the first step in the next stage of our electronic commerce policy. We're keen to remove roadblocks to the use of e-commerce provided we can maintain our enforcement capability."