Australia: “Crowd-Sourced Funding” Bill (Document)

The Australian Parliament has revealed the expected legislation regarding the regulatory structure of investment crowdfunding.  The bill, along with an explanatory memorandum, is embedded below.  The government had previously stated final rules were a priority for completion before the end of the year. “Crowd-sourced funding” (CSF), as the Aussies call it, is described as an emerging form of funding that allows entrepreneurs to raise funds from a large number of investors. According to the government, CSF has the potential to provide finance for innovative business ideas and additional investment opportunities for retail investors, while ensuring investors continue to have sufficient information to make informed investment decisions.  The bill makes amendments to the the Australian Securities and Investments Commission Act of 2001 to allow for crowdfunding and is designed to reduce regulatory barriers.

The explanatory memorandum was distributed by the Minister for Small Business and Assistant Treasurer, Kelly O’Dwyer MP.