Fundraising restrictions on advertising and cold calling

There are significant restrictions on advertising and 'cold calling' (that is, calling members of the public without their prior consent) in relation to investments that require a disclosure document.

You are generally not allowed to cold call members of the public to sell securities, although if you are an Australian financial services licensee you may do so in certain circumstances. For more information see Regulatory Guide 38 The hawking provisions (RG 38).

If a disclosure document is required for the offer of securities you cannot advertise the offer until the disclosure document has been lodged. When the disclosure document has been lodged you may advertise the offer as long as that advertising includes a statement that:

  • offers will be made in or accompanied by a copy of the disclosure document, and
  • anyone wishing to buy securities will need to complete the application form in the disclosure document.

For more information see Regulatory Guide 254 Offering securities under a disclosure document (RG 254).

 

What's new

ASIC updates guidance as crowd-sourced funding regime extends to proprietary companies

ASIC has released updated regulatory guides to coincide with the extension of the crowd-sourced funding (CSF) framework to eligible proprietary companies. This starts on 19 October 2018.

Disclosure documents can now be lodged electronically

On 29 June 2018, ASIC approved an instrument to facilitate the electronic lodgement of documents that have historically been provided to the Corporations team in hard copy.

ASIC takes action on misleading or deceptive conduct in ICOs

ASIC is focused on misleading or deceptive conduct in the marketing and selling of digital or virtual tokens via initial coin offerings (ICOs).

More releases on fundraising

Last updated: 20/10/2014 12:00