Steps are being taken to assist small businesses in accessing finance, with the Government seeking to create a dynamic, competitive economy. This will be welcomed by entrepreneurs and start ups that often have difficulty securing funding to get their ideas off the ground.
Treasury has released a Discussion Paper seeking feedback on potential Crowd-sourced Equity Funding (Crowd Funding) models. The models put forward for discussion include one based on the model recommended by the Corporations and Markets Advisory Committee (CAMAC) in June 2014 (discussed in our previous alert on Crowd-sourced Equity Funding), and one similar to the recently implemented New Zealand model. A third option put forward is maintaining the status quo, which would be of no assistance, leaving small business and start ups to continue to operate under the same regime as ASX listed companies.
Through this process, the Government has stated that it is looking to balance a regime which supports investment and reduces compliance costs whilst maintaining an appropriate level of investor protection.
The Discussion Paper, which can be found here, calls for comments on the various models and the future of Crowd Funding regulation. The deadline for submissions is 6 February 2015.