Regulation Impact Statement – Department of the Treasury
On 14 September 2017 the Government introduced the Corporations Amendment (Crowd-sourced Funding for Proprietary Companies) Bill 2017 to Parliament.
The Bill amends the Corporations Act 2001 to extend the crowd-sourced equity funding framework to proprietary companies building on the Corporations Amendment (Crowd-sourced Funding) Act 2017 which implements the crowd-sourced equity funding framework for public companies. Improving access to finance for small and innovative business is balanced by maintaining investor protections through requiring a minimum of two directors, annual financial and directors’ reports and restrictions on related party transactions. The Australian Securities and Investments Commission will closely monitor the CSF market to ensure that changes are operating as intended.
A Regulation Impact Statement (RIS) was prepared and certified by the Department of the Treasury and has been assessed as compliant with the Government’s requirements and consistent with best practice.
The RIS estimates that the preferred option will have an annual average regulatory cost of $26.8 million. The OBPR agreed with this estimate.