The Government has published a draft regulation which provides additional details on some aspects of the proposed crowd-sourced equity funding (CSEF) regime contained in the Bill which was introduced into Parliament late last year.
Following the introduction of the Corporations Amendment (Crowd-sourced Funding) Bill 2015 (Bill) into Parliament late last year (see December 2015 G+T Corporate Advisory Update), the Government has sought feedback on the draft Corporations Amendment (Crowd-Sourced Funding) Regulation 2015 (Regulation) and the associated Explanatory Statement. The draft Regulation provides additional detail on a range of matters, including:
- the class of securities that may be offered;
- the minimum requirements for what a CSEF issuer must include in their offer document;
- the prescribed checks that intermediaries must undertake before allowing an offer to be made on their platform; and
- the wording of the mandatory risk warning and retail investor risk acknowledgment that investors must agree to before they may invest in CSEF products.
Submissions on the draft Regulation closed on 29 January 2016 and the Bill has been referred to the Senate Economics Legislation Committee, with the report due on 29 February 2016. We will continue to monitor the progress of the Bill and Regulation.