In October 2014, the Government released its Industry Innovation and Competitiveness Agenda (Competitiveness Agenda). Among the proposals included in the Competitiveness Agenda, the Government announced that it would consult on a potential regulatory framework for crowd-sourced equity funding (CSEF) in Australia.
This discussion paper forms the basis of the Government's consultation on CSEF. The discussion paper seeks stakeholder feedback on characteristics of potential CSEF models, including a model put forward by the Corporations and Markets Advisory Committee in a report released in June 2014, as well as a model similar to that recently implemented in New Zealand.
The Government has not made a decision on its preferred CSEF framework and is not limiting itself to implementing either the Corporations and Markets Advisory Committee or New Zealand models in full. The consultation process is intended to ensure that the Government strikes the right balance between supporting investment, reducing compliance costs (including for small business) and maintaining an appropriate level of investor protection.