EQUITY CROWD FUNDING PART 2 OF 3

Mark this day in your diary. Whist many see todays announcement by Treasury of a the public company structure for Equity Crowd Funding as a step back towards a clumsy CAMAC type approach, we believe it's an important step towards large scale Australian sourced crowd funding, albeit for those with pre committed funds available to mount a campaign on a grander scale (than most start-ups can afford).
As avid followers of the Crowd Funding its too easy to leap ahead of the public perception. Recall the days when  'online advertising' was seen as the new frontier? We already know Crowdfunding is destined to become the norm across future financial markets, yet wind back a decade and the standard dogma was print media and the all powerful TV news and Print. Today we can not imagine the advertising without 'the internet'.
So mark this day and the next available, we need you, your views and contribution towards Part 3, the part where innovative small companies get the opportunity to take it to the crowd in a PTY company.  Submissions close 31 August so there is no time to loose, and in the interim, please take a look at these highlights and find the full report via Facilitating crowd-sourced equity

Issuers	​Intermediaries	​Investors
Issuers must be incorporated as a public company in Australia.	Must hold an Australian Financial Services Licence	Investment caps for retail investors of:
Limited to certain small enterprises that have not raised funds under existing public offer arrangements.	Value	•     $10,000 per offer per 12‑month period; and
​		•     $25,000 in aggregate CSEF investment per 12‑month period, self‑certified by investors.
Value	Value	​Intermediaries would be responsible for monitoring compliance for investments made via their platform.
Relief from certain public company compliance costs would be available to newly registered or converted public companies. Reliefs include:	Must undertake prescribed checks on the issuer.	Signature of risk acknowledgement statements prior to investment, including that:
exemptions from disclosing entity rules;		•     investing in early stage companies is risky and the investor may lose the entirety of their investment;
allowing annual reports to be only provided online;		•     investors may not be able to sell their shares;
exemption from holding an annual general meeting (AGM); andalue		the value of the investment may be diluted over time; and ​
•     exemptions from the need to appoint an auditor and have financial accounts audited, subject to a cap of $1 million raised from CSEF or under a disclosure exemption.		investors have complied with the investor caps.
Exemptions will be available for a period of up to five years, subject to annual turnover and gross assets thresholds of $5 million (excepting the audit exemption).	​Must provide generic risk warnings to investors	​Unconditional right to withdraw for 5 days after accepting offer. Additional rights in relation to material adverse changes during the offer period.
Permitted securities are one class of fully paid ordinary shares per CSEF offer. All shares in a particular CSEF offer must have the same price, terms and conditions.	No restrictions on fee structures; however, fees paid by an issuer must be disclosed.	Value
Reduced disclosure requirements, including a tailored CSEF disclosure document. Required disclosures will relate to:	Permitted to invest in issuers using their platform; however, details of any investments must be disclosed.
​•     facts about the company and its structure, including financial statements;•     facts about the CSEF raising; and •     mandatory risk warnings.