Footnotes

Chapter 1 - Introduction

[1]        Journals of the Senate, No. 134—3 December 2015, p. 3624.

[2]        Journals of the Senate, No. 138—22 February 2016, p. 3758.

[3]        Corporations and Markets Advisory Committee (CAMAC), Crowd sourced equity funding, May 2014, p. 1.

[4]        Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, (Explanatory Memorandum) p. 7.

[5]        Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 3.

[6]        Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 8.

[7]        See http://www.business.gov.au/small-business/Pages/jobs-and-small-business-package.aspx (accessed 22 February 2016).

[8]        Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 3.

[9]        Senate Standing Committee for the Scrutiny of Bills, Alert Digest No. 1 of 2016, pp. 9–11.

[10]      Senate Standing Committee for the Scrutiny of Bills, Second report of 2016, 24 February 2016, pp. 64–67.

[11]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 5.

[12]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 9.24.

[13]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 10.11.

[14]      Parliamentary Joint Committee on Human Rights, Human rights scrutiny report, Thirty-third report of the 44th Parliament, 2 February 2016, p. 2.

Chapter 2 - Background

[1]        Australian Government, Department of Broadband, Communications and the Digital Economy, Advancing Australia as a Digital Economy: an update to the National Digital Economy Strategy, 2013, pp. ix, 31 and 33.

[2]        Australian Government, Department of Broadband, Communications and the Digital Economy, Advancing Australia as a Digital Economy: an update to the National Digital Economy Strategy, 2013, p. 33.

[3]        Australian Government, Department of Broadband, Communications and the Digital Economy, Advancing Australia as a Digital Economy: an update to the National Digital Economy Strategy, 2013, p. 33.

[4]        CAMAC was established in 1989 and is currently constituted under Part 9 of the ASIC Act 2001. CAMAC provides independent advice to the Minister, when requested or on its own initiative, on the administration of relevant laws or changes to them.

[5]        Corporations and Markets Advisory Committee, Crowd sourced equity funding Report, May 2014, p. 1.

[6]        CAMAC, Crowd sourced equity funding, May 2014, p. 7.

[7]        Corporations and Markets Advisory Committee, 'Crowd sourced equity funding', Guide through the CAMAC report.

[8]        Corporations and Markets Advisory Committee, Crowd sourced equity funding Report, May 2014, p. 6.

[9]        Corporations and Markets Advisory Committee, Crowd sourced equity funding Report, May 2014, p. 6.

[10]      Corporations and Markets Advisory Committee, Crowd sourced equity funding Report, May 2014, p. 12.

[11]      CAMAC, Crowd sourced equity funding, May 2014, p. 7. In reaching this conclusion CAMAC conducted its review 'in the context of considerable, and continuing, developments concerning CSEF [crowd-sourced equity funding] in a number of overseas jurisdictions.' CAMAC, Crowd sourced equity funding, May 2014, p. 2. Details of approaches to CSEF are set out in appendices to the CAMAC report.

[12]      Corporations and Markets Advisory Committee, Crowd sourced equity funding Report, May 2014, p. 12.

[13]      CAMAC, Crowd sourced equity funding, May 2014, p. 49.

[14]      Corporations and Markets Advisory Committee, 'Crowd sourced equity funding', Guide through the CAMAC report.

[15]      CAMAC, Crowd sourced equity funding, May 2014, pp. 52–53.

[16]      CAMAC, Crowd sourced equity funding, May 2014, p. 87.

[17]      Corporations and Markets Advisory Committee, 'Crowd sourced equity funding', Guide through the CAMAC report, May 2014.

[18]      CAMAC, Crowd sourced equity funding, May 2014, p. 135.

[19]      CAMAC, Crowd sourced equity funding, May 2014, p. 135.

[20]      CAMAC, Crowd sourced equity funding, May 2014, p. 144.

[21]      CAMAC, Crowd sourced equity funding, May 2014, pp. 6 and 12.

[22]      Australian Government, Industry Innovation and Competitiveness Agenda, An action plan for a stronger Australia, p. 81.

[23]      Australian Government, Discussion paper, 'Crowd-sourced Equity Funding', December 2014, p. iii.

[24]      Financial System Inquiry, Final Report, November 2014, p. 179.

[25]      Financial System Inquiry, Final Report, November 2014, p. 145.

[26]      See Government Response to the Financial System Inquiry, available at: http://treasury.gov.au/fsi (accessed 23 February 2016).

[27]      Minister for Industry, Innovation and Science, the Hon Christopher Pyne and Assistant Minister for Innovation, the Hon Wyatt Roy, Joint media release, 'Crowd-sourced equity funding vital for innovation', 20 October 2015 http://minister.industry.gov.au/ministers/pyne-roy/media-releases/crowd-sourced-equity-funding-vital-innovation (accessed 23 February 2016).

[28]      See Government Response to the Financial System Inquiry, p. 16, available at: http://treasury.gov.au/fsi (accessed 23 February 2016).

[29]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 7.

[30]      Productivity Commission, Business Set-up, Transfer and Closure, Report No. 75, 30 September 2015, p. 143.

[31]      Productivity Commission, Business Set-up, Transfer and Closure, Report No. 75, 30 September 2015, p. 19.

[32]      Productivity Commission, Business Set-up, Transfer and Closure, Report No. 75, 30 September 2015, p. 2.

[33]      IOSCO, Crowdfunding 2015 Survey Responses Report, December 2015, p. v, https://www.iosco.org/library/pubdocs/pdf/IOSCOPD520.pdf (accessed 5 February 2016).

[34]      The Board of IOSCO, 'Statement on Addressing Regulation of Crowdfunding, December 2015', http://www.iosco.org/library/pubdocs/pdf/IOSCOPD521.pdf  (accessed 5 February 2016).

[35]      James Murray, Senior Lecturer, Department of Business, Christchurch Polytechnic Institute of Technology, 'Equity Crowdfunding and Peer-to-Peer Lending in New Zealand: The first year', JASSA, The Finsia Journal of Applied Finance, Issue 2, 2015. See http://www.australianbankingfinance.com/new-zealand/crowdfunding-lessons-from-nz/ (accessed 22 February 2016).

[36]      Craig Foss, Financial Markets Authority, 'NZ financial markets enter new era', media release, 1 April 2014.

[37]      Consumer, 'Crowdfunding', 4 March 2015, https://www.consumer.org.nz/articles/crowdfunding (accessed 25 February 2016).

[38]      Corporations and Markets Advisory Committee, Crowd sourced equity funding Report, May 2014, p. 16.

[39]      House of Representatives, Hansard, 3 December 2015, p. 14,633.

[40]      The Treasury website, 'Crowd-sourced equity funding', 22 December 2015, exposure draft.

[41]      House of Representatives, Hansard, 3 December 2015, p. 14,633.

[42]      Explanatory Memorandum, paragraph 1.10.

[43]      Productivity Commission, Business Set-up, Transfer and Closure, Report No. 75, 30 September 2015, pp. 137 and 144. See also, OICU-IOSCO, Media Release, 'IOSCO publishes 2015 Survey Responses Report on Crowdfunding', IOSCO/52/2015, Madrid, 21 December 2015.

[44]      ASIC, submission to Treasury's discussion paper on crowd-sourced equity funding, 6 February 2015.

[45]      Submission 10, p. 4.

[46]      House of Representatives, Hansard, 3 December 2015, p. 14,633.

Chapter 3 - Main issues

[1]        Media Release, 'IOSCO publishes 2015 Survey Responses Report on Crowdfunding', IOSCO/52/2015, Madrid, 21 December 2015.

[2]        Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, pp 13–16.

[3]        Subsection 738(H)(1), Corporations Amendment (Crowd-sourced Funding) Bill 2015.

[4]        Corporations and Markets Advisory Committee, 'Crowd sourced equity funding', Guide through the CAMAC report. The Productivity Commission also recommended that companies that raise equity under CSEF arrangements should be regulated as 'exempt' public companies for a limited period and subject to initial lower reporting and disclosure requirements than public companies raising funds. Productivity Commission, Business Set-up, Transfer and Closure, Report No. 75, 30 September 2015, p. 19.

[5]        Submission 5, paragraph 3(d).

[6]        Submission 5, paragraph 3(i).

[7]        Submission 15, paragraphs 1.1–1.2.

[8]        Submission 15, paragraphs 1.1–1.2.

[9]        Submission 16, p. 5.

[10]      Submission 12, p. 4.

[11]      Submission 21, paragraph 18.

[12]      Submission 21, paragraph 18.

[13]      Submission 18, p. 1.

[14]      Submission 18, p. 2.

[15]      Submission 2, p. 5.

[16]      Submission 2, p. 5.

[17]      Submission 2, p. 10.

[18]      Submission 9, paragraph 9.2.

[19]      Proof Committee Hansard, 23 February 2016, p. 4.

[20]      Proof Committee Hansard, 23 February 2016, p. 14.

[21]      Proof Committee Hansard, 23 February 2016, p. 18.

[22]      Proof Committee Hansard, 23 February 2016, p. 20.

[23]      Proof Committee Hansard, 23 February 2016, p. 18.

[24]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 3.

[25]      Proof Committee Hansard, 23 February 2016, p. 18.

[26]      House of Representatives Hansard, 3 December 2015, pp. 14634–5.

[27]      Dr Marina Nehme, Submission 7, pp. [3–4].

[28]      Explanatory Memorandum, p. 3.

[29]      Proof Committee Hansard, 23 February 2016, p. 20.

[30]      Submission 7, p. [4].

[31]      Submission 7, p. [5].

[32]      Submission 12, paragraph 1.24.

[33]      Submission 18, p. 2.

[34]      Submission 9, paragraph 9.2.

[35]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 9.20.

[36]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 2.20.

[37]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 2.22.

[38]      Explanatory Memorandum , Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 2.24.

[39]      Subsection 738(H)(2), Corporations Amendment (Crowd-sourced Funding) Bill 2015.

[40]      Fat Hen Ventures Ltd, Submission 2, p. 3. See also Equitise, Submission 21, p. 4.

[41]      Mr Jonathon Wilkinson, Proof Committee Hansard, 23 February 2016, p. 3.

[42]      CrowdfundUP, Submission 15, p. [3].

[43]      Submission 3, p. 3.

[44]      Submission 3, p. 3.

[45]      Submission 10, p. 3.

[46]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 11. The memorandum sets the listed requirements out in detail.

[47]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 11.

[48]      Corporations and Markets Advisory Committee (CAMAC), Crowd sourced equity funding, May 2014, p. 49.

[49]      Fat Hen Ventures Ltd, Submission 2, p. 5.

[50]      Submission 14, p. 4.

[51]      Submission 18, p. 1.

[52]      Proof Committee Hansard, 23 February 2016, p. 15.

[53]      Submission 12, paragraphs 1.27 and 1.29.

[54]      Mr Jack Quigley, Proof Committee Hansard, 23 February 2016, p. 1.

[55]      Mr Jonathon Wilkinson, Proof Committee Hansard, 23 February 2016, p. 5.

[56]      Equitise, Submission 21, p. 5.

[57]      Equitise, Submission 21, Appendix 3.

[58]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 2.34.

[59]      Submission 7, p. [3].

[60]      Submission 7, pp. [1–2].

[61]      Proof Committee Hansard, 23 February 2016, p. 5.

[62]      Proof Committee Hansard, 23 February 2016, p. 6.

[63]      Submission 8, p. 5.

[64]      Submission 9, paragraph 1.4(e)

[65]      Submission 9, p. 2.

[66]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 25.

[67]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 3.3.

[68]      The Hon Alex Hawke MP, Assistant Minister to the Treasurer, House of Representatives Hansard, 3 December 2015.

[69]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 3.8.

[70]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 3.9.

[71]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 4.

[72]      See, for example, Fat Hen Ventures, Submission 2, p. 7 and CrowdVenture, Submission 5, paragraph 2(c).

[73]      Submission 7, p. [7].

[74]      Submission 15, paragraph 4.4.

[75]      Submission 15, paragraph 4.5.

[76]      Submission 9, paragraphs 1.4 and 5.1–5.3.

[77]      Submission 9, paragraph 1.4 (c).

[78]      Submission 16, p. 3.

[79]      Business Council of Co-operatives and Mutuals, Submission 10, p. 3.

[80]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, pp. 25–26.

[81]      Section 738Q, Corporations Act 2001.

[82]      Section 738Q, Corporations Act 2001.

[83]      Submission 5, paragraph 2(c).

[84]      Submission 5, paragraph 5(e).

[85]      Submission 8, paragraph 7.

[86]      Submission 8, paragraph 7.

[87]      Submission 9, paragraph 1.2.

[88]      Submission 9, paragraph 1.2

[89]      Submission 20, p. 2.

[90]      Submission 7, pp. [7–8].

[91]      Submission 7, p. [7].

[92]      Proof Committee Hansard, 23 February 2016, p. 26.

[93]      Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, paragraph 9.20.

[94]      House of Representatives, Hansard, 3 December 2016, p. 14,635. 

[95]      Subsection 738(ZD)(1), Corporations Amendment (Crowd-sourced Funding) Bill 2015.

[96]      Submission 21, p. 4.

[97]      Mr Jonathon Wilkinson, Proof Committee Hansard, 23 February 2016, p. 3.

[98]      Submission 15, paragraph 2.1.

[99]      Submission 15, paragraph 2.2.

[100]    Submission 2, p. 7.

[101]    Fat Hen Ventures, Submission 2, p. 7.

[102]    Submission 9, paragraphs 1.4(h) and 8.1(b).

[103]    The Treasury, correspondence correcting transcript of Proof Committee Hansard, 23 February 2016, p. 17.

[104]    See subsection 738(ZC)(1), Corporations Amendment (Crowd-sourced Funding) Bill 2015.

[105]    Dr Marina Nehme, Submission 7, pp. 9–10.

[106]    Law Council of Australia, Submission 8, p. 5.

[107]    Submission 9, paragraphs 1.4(h) and 8.1(a).

[108]    Submission 16, p. 3.

[109]    BDO Australia, Submission 18, p. 3.

[110]    CAMAC, 'Crowd sourced equity funding', Guide through the CAMAC report, p. 2.

[111]    CAMAC, 'Crowd sourced equity funding', Guide through the CAMAC report, p. 2.

[112]    Explanatory Memorandum, Corporations Amendment (Crowd-sourced Funding) Bill 2015, p. 29.

[113]    Submission 8, p. 2.

[114]    Submission 7, p. [8].

[115]    Submission 7, p. [8].

[116]    Proof Committee Hansard, 23 February 2016, p. 23.

[117]    Explanatory Memorandum, p. 5.

[118]    Mr Jack Quigley, Proof Committee Hansard, 23 February 2016, p. 2. In its submission, CrowdfundUP strongly suggested that, after 12–24 months of the legislation being enacted, it be revisited and revised.  Submission 15, conclusion.

[119]    Submission 5, paragraph 2(d).

[120]    Submission 14, p. 2.

[121]    Proof Committee Hansard, 23 February 2016, p. 13.

[122]    Proof Committee Hansard, 23 February 2016, p. 14.

[123]    Mr Jeffrey Broun, Proof Committee Hansard, 23 February 2016, p. 1; Law Council of Australia, Submission 8, p. 1; ASSOB,  Submission 9, paragraphs 1.1–1.3.

[124]    Mr Jack Quigley, Proof Committee Hansard, 23 February 2016, p. 2.

[125]    Mr Timothy Heasley, Proof Committee Hansard, 23 February 2016, p. 2.

[126]    Submission 16, paragraph 2.1.

[127]    Mr Gavan Ord, Proof Committee Hansard, 23 February 2016, p., 13.

[128]    Mr Gavan Ord, Proof Committee Hansard, 23 February 2016, p. 14.

Dissenting Report by Labor Senators

[1]        Submission 15, p. 5. 

[2]        Submission 7, p. 2. 

[3]        Submission 8, p. 2. 

[4]        Submission 10, p. 3.

[5]        Submission 12, p. 4.