Crowd-Sourced Funding - Intermediaries

ASIC has recently established a new regime governing the process and methodology for equity-based Crowd-Sourced Funding (“CSF”). Only eligible companies which satisfy the specific requirements may participate. These companies are required to use intermediaries who host the CSF Offer on an online platform and manage the overall CSF process. These CSF Intermediaries must in turn, hold an Australian Financial Services (“AFS”) Licence with the appropriate authorisations to provide a crowd-funding service, as these activities now constitute a financial product and service.

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Crowd-Sourced Funding

ASIC has recently established a new regime governing the process and methodology for equity-based Crowd-Sourced Funding (“CSF”). Specifically, the new CSF regime aims to facilitate flexible and low-cost access to capital for small to medium institutions, especially in the fintech and startup sector, whilst ensuring adequate protections still exist for retail investors.

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Approach to Fintechs - ASIC and FMA

ASIC and the Financial Markets Authority (“FMA”) of New Zealand signed a Memorandum of Understanding in 2012. Today, ASIC provided details of additional co-operation between it and its trans-Tasman partner - in particular in regard to collaborating and supporting the growing fintech (financial technology) industries.

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Now APRA May Pursue the Commonwealth Bank of Australia

Okay, so I was wrong. Although I hate to admit it, I was not factually correct in my earlier post about the AML/CTF issues dogging the CBA. In my piece on 14 August 2017, I noted the fact that a second regulator - ASIC, was following in AUSTRAC’s footsteps. Why have one when you can have two? I said.

Today, APRA announced that it too is establishing an independent prudential enquiry into the CBA.

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Now ASIC May Pursue the Commonwealth Bank of Australia

Why have one when you can have two? That is not an unreasonable expectation when your favourite cricket team has just hit a six off the penultimate ball of the innings to get within five runs of victory. Or when, as a struggling university graduate, you receive two great job offers on consecutive days.

However, the same cannot be said of the CBA. Less than two weeks ago, AUSTRAC announced that it had initiated civil proceedings against CBA in regard to serious and systemic issues relating to alleged contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act (Cth) 2006. This involved the use of Intelligent Deposit Machines - a type of ATM which accepts cash deposits (amongst other things).

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2GB’s Chris Smith, Alex Malley and Me

Chris Smith is a highly successful broadcaster on 2GB. He pretty much owns the afternoon timeslot and his success cannot be just brushed aside because you may take issue with some of his positions

In any event, following the disintegration of my BS meter after listening to one particular podcast which was choked full of fawning and kowtowing, I decided to write to Chris kindly informing him of Alex Malley’s public record.

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Where To Now For CPA Australia

CPA Australia only has itself to blame. Only a miracle on par with Moses parting the Red Sea will not prevent CPA public practice members losing additional protection from malpractice lawsuits from 8 October 2017.

The Professional Standards Council has confirmed that its professional standards scheme, which limits the liability of participants who are members of an appropriate industry organisation, will not be renewed before it expires on 7 October 2017. The consequences of this are that many public practice members will see an increase in their Professional Indemnity insurance premiums and be exposed to unlimited liability for negligence.

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