Crowdfunding: Recent International Developments and Analysis of Its Compatibility with Australia's Existing Regulatory Framework

13 Pages Posted: 13 Sep 2013

See all articles by Matthew Vitale

Matthew Vitale

Monash University Faculty of Law

Date Written: July 5, 2013

Abstract

Crowdfunding has recently emerged as an alternative means of raising capital. This has the potential to challenge the existing regulatory framework for capital raisings and securities regulation, and has resulted in different responses from regulators in the European Union and the United States. However, there has been only a limited response by Australian regulators to this emerging industry. This paper considers the emergence of crowdfunding through the convergence of the two distinct concepts of crowdsourcing and microfinance. The two crowdfunding models are considered (distinguished by what contributors are promised in return for their contribution) and the Australian regulatory issues associated with each are identified. Finally, an assessment of whether Australia’s current regulatory framework is compatible with crowdfunding will be made, with recommendations for regulatory action.

Keywords: crowdfunding, crowd funding, securities, regulation, Australia, micro finance, crowd sourcing, crowd sourcing

Suggested Citation

Vitale, Matt, Crowdfunding: Recent International Developments and Analysis of Its Compatibility with Australia's Existing Regulatory Framework (July 5, 2013). Available at SSRN: https://ssrn.com/abstract=2324573 or http://dx.doi.org/10.2139/ssrn.2324573

Matt Vitale (Contact Author)

Monash University Faculty of Law ( email )

Wellington Road
Clayton, 3145
Australia

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