The Federal Government's Corporation and Markets Advisory Committee Discussion Paper on crowd sourced equity funding is a very positive development for crowd sourced equity funding in Australia. The Government is formally looking at law reform options to facilitate crowd sourced equity funding or equity crowd funding in Australia. The discussion paper canvasses the issues and obstacles to carrying on equity crowd funding in Australia that exists at the moment and calls for submissions and suggestions as to whether crowd sourced equity funding should be permitted and if so in what form and how it should be regulated.
Right and what are some of the global developments in crowd source equity funding and what will they mean for this space in Australia?
Jacqui there's been a lot happening overseas. The European Commission has recently also released its own discussion paper looking at law reform options, whether there should be reform, what form it should take, but really the most significant recent development in the last couple of months, the US Securities and Exchange Commission has put out its own draft guidelines and rules as to exactly how it proposes to regulate crowd sourced equity funding in the United States. That means that really for the first time we are seeing now the detail of how it's likely to work in practice. This is a great opportunity for Australia coming at the same time as our own law reform process is well underway and allows us to be near the forefront and hopefully take advantage of this opportunity to reform the law to enable equity crowd funding in Australia and provide this exciting new form of capital to our entrepreneurs and other businesses.
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