The Coalition made an election promise on 25 October 2010 to conduct a thorough examination of Australia’s financial system. This promise was delivered with the final report of the Financial System Inquiry, led by David Murray AO, and publicly released on 7 December last year.
The financial system affects all Australians and is the largest sector of our economy, having contributed $139 billion over the past year and employing around 400,000 Australians.
The Part We Like
A leading part of innovation with regards to improving Australia’s financial system pertains to the engine room of our economy – Small and Medium Sized businesses and how these enterprises will soon be able to receive funding through the means of equity crowdfunding (ECF) as a disruptive source of capital.
Specifically, the Government has stated:
- The development of an ECF market in Australia is an urgent priority for the Government to support the funding needs of early-stage innovators; and
- It will consult on draft legislation to implement this framework before the end of 2015.
The Government has already consulted widely on options for ECF in early 2015. The Minister for Small Business and Assistant Treasurer will consult on draft legislation to implement this framework by the end of 2015. The Government will consult the community on debt crowdfunding (DCF) in parallel with legislation to implement ECF.
NOTE: This consultation period is expected to occur in the next 7 days.
Innovation in the financial sector is always transforming the financial system and this is likely to continue. New payment methods, innovative funding sources, better use of customer information and deeper cross-border linkages promise enormous opportunities if properly harnessed. Our policy settings must facilitate entry of these disrupters rather than acting as a blockage.
Who is Equitise?
Equitise is the leading Trans-Tasman Investment platform, currently enabling both Kiwi and Aussie investors the opportunity to invest alongside well-known angels, VC funds, and ASX brokers. Our platform is in its early stages, however, we have already managed to return 25% to our investors through the listing of Dong Fang Modern on the ASX in just two short months.
Also available on Equitise’s blog here