The Crowd-funding Act and changes to the Australian Market Licence regime: The latest ASIC consultation paper
Most businesses that facilitate the trading of assets or financial instruments (‘market venues’) are required to hold an Australian Market Licence (AML), and are subject to an accompanying regulatory regime. The Corporations Amendment (Crowd-sourced Funding) Act 2017 (the CSF Act), passed into law in March, creates a bespoke regulatory regime for crowd-sourced funding. At the same time, the CSF Act amends the Corporations Act 2001 so that some ‘lesser risk’ market venues can be exempted from some obligations under the AML regulatory regime. By Dr. Drew Donnelly, Compliance Quarter On 20 July, The Australian Securities & Investments Commission (ASIC) released a consultation paper an exemption framework and inviting comment. So, what exactly is ASIC proposing? The CSF Act The key purpose of the CSF Act is to allow small unlisted…