Australian Member of Parliament and Secretary to the Minister for Communications Paul Fletcher published an interesting missive earlier this month on the importance of crowdfunding and why politicians should care. Published in theJournal of Banking and Finance Law and Practice the statement is clear in his support of the new form of finance.
Outside of the fact that much of the world is pushing forward with streamlined regulations, acknowledging the compelling need to support innovative small companies, the Liberal Party Member Fletcher states that, “crowdfunding could be a new way for entrepreneurs in the technology sector to raise money. In Australia it is often hard to raise early stage capital, in contrast to markets like the US where there is a much deeper market for the provision of capital at all stages of a technology company’s growth.”
Fletcher recognizes the need to create competition for stodgy old financing structures stating;
Previously the Corporations & Market Advisory Committee (CAMAC) released a report, along with recommendations on improving the regulatory environment for crowdfunding. The suggestions by CAMAC were called “totally unworkable”, falling far short of the realistic requirements for a viable marketplace.
Fletcher finds fault in the work by CAMAC as well saying;
While noting the need for investor protection, Fletcher appears to turn the page on the “traditional investor protection rationale” stating;
The Australian government published a report on the existing financial system earlier this month as it looks to improve and modernize the financial realm. Comments are expected to be received into early 2015.
Posted from : http://www.crowdfundinsider.com/2014/12/60307-australian-mp-talks-importance-crowdfunding/