November 20, 2017

November 20, 2017

Subscribe to Latest Legal News and Analysis

November 17, 2017

Subscribe to Latest Legal News and Analysis

Australian Securities and Investments Commission Announces the Commencement Date for its Crowd-Sourced Funding Regime

The Australian Securities and Investments Commission (ASIC) has announced that will begin accepting applications under its new crowd sourced funding  (CSF) regime from 29 September 2017 onwards. From this date, applications can be submitted via the existing ASIC ‘eLicensing’ portal.

In preparation for the commencement of the CSF regime, ASIC has released an information sheet outlining:

  1. the expected application process and timeframe; and

  2. its approach of assessing applicants.

During the period between 29 September 2017 and 27 October 2017, ASIC will assess applications lodged on similar dates in ‘batches.’ Successful applications from each batch will progress broadly at the same time. Incomplete or inadequate applications lodged during this period may be refused or placed in later application batches. Applications which are lodged from 27 October 2017 onwards will be considered individually as soon as possible.

ASIC cautions that while the timeframe for its assessment of any given application may vary on a case-by-case basis, it should be similar to the processing times for other AFS licences (which may take up to 60 days).

In addition to the standard ASIC licensing documentation, CSF applicants will be assessed by their:

  • responses to its C11 questions, each of which relates to the applicant’s proposed documented processes for its operation under the CSF regime;

  • provision of information in the C11 proof such as the standard terms of the applicant’s hosting agreement with eligible CSF companies; and

  • response to the B5 Adequacy of resources (additional non-core proof documents) – Information Technology Capacity Statement.

Due to the expected interest in this new regime, it is strongly recommended that applicants submit their applications as close to the 29 September 2017 as possible in order to come under the first batch of applications.

Felix Charlesworth also contributed to this article.

Copyright 2017 K & L Gates

TRENDING LEGAL ANALYSIS


About this Author

Jim Bulling, KL Gates, financial services lawyer, funds management attorney
Partner

Mr. Bulling's practise focuses on banking and financial services and he acts for a range of entities in the financial services and funds management industry. His clients include Australian and international investment managers, banks, trustees of superannuation funds, wholesale and retail investment trusts, funds management companies and financial planning groups.

His main areas of focus include banking and financial product disclosure issues, financial services compliance issues, financial product distribution issues and superannuation and...

61-3-9640-4338
Daniel Knight, KL Gates, financial services industry lawyer, retail fund managers attorney
Senior Associate

Mr. Knight is a commercial and regulatory lawyer with a focus on the financial services industry. He advises a range of wholesale and retail fund managers, banks, financial advisers, superannuation fund trustees and other financial services firms.

Mr. Knight concentrates on commercial transactions in the industry and on advising clients about Australian licensing, disclosure, and compliance obligations. He regularly advises international fund managers about offering their products in Australia.

Mr. Knight also has extensive experience advising multinational organisations about bribery, corruption, and anti-money laundering (AML) issues and the governance and compliance measures necessary to prevent these issues from arising.

61-3-9640-4324