New avenue for crowd funding

Eligible public companies now have a new option to raise capital following the licensing of Australia’s first crowd-fund sourcing intermediaries.

Seven companies have been issued with Australian Financial Services (AFS) licence authorisations to act as intermediaries in the provision of a crowd-sourced funding service.

Eligible public companies can now use the crowd-sourced funding regime to raise capital by making offers of ordinary shares to investors via the on-line platform of one of these intermediaries.

The crowd-sourced funding regime is designed to provide start-ups and small to medium sized companies with a new means to access capital to develop and grow.

Crowd-sourced funding offers are subject to fewer regulatory requirements than other forms of public fundraising.

ASIC Commissioner John Price says the development marks a significant milestone for crowd-sourced funding in Australia.

“ASIC has been assessing applications as a matter of priority, as suitable intermediaries needed to be licensed before fundraising under the new regime could commence,” he says.

“Intermediaries have an important gatekeeper role, which will be key to building and maintaining investor trust in crowd-sourced fundraising – so we are pleased to have now issued the first tranche of authorisations.”

The newly licensed intermediaries have now been added to ASIC’s register of AFS licensees.

ASIC’s free online search can be used by investors, potential crowd-sourced funders and others to confirm the authorisations held by individual licensees.

►Want to keep up-to-date with the latest business news? Become a CCI Member and get access to exclusive information designed to help you do business better. Talk to our Membership team today on 1300 4 22492 or email membership@cciwa.com for more information.

You may also be interested in

Household confidence dives amid soaring costs
Household confidence dives amid soaring costs
The confidence of WA households for the coming year has tumbled to its weakest position in six years, according to CCIWA’s final Consumer Confidence Survey...
Read more »
Confidence for 2023 dives as households endure soaring costs 
Confidence for 2023 dives as households endure soaring costs 
CCIWA Chief Economist Aaron Morey The confidence of WA households for the coming year has tumbled to its weakest position in six years, worse than...
Read more »
Ashburton iron ore plans laid bare
Our WA Works content is only available to subscribers Subscribe to WA Works WA Works is a subscription-based service and the number one source of...
Read more »