Managed accounts provider enters crowdfunding

ASIC has granted a variation to the AFSL of a managed accounts provider, allowing it to provide an equity crowdfunding service.

BIR Financial told shareholders that its securities trading and corporate advisory business, Pulse Markets, was recently granted permission to begin an equity crowdfunding service.

Pulse Markets currently offers several model portfolios to clients as part of its managed discretionary accounts business. It also provides securities trading services to retail and wholesale investors.

BIR Financial is listed on the ASX and said in a statement that: "Pulse Markets maintains its advantage in the rapidly evolving financial services industry through independence, innovative financial products and new market opportunities to meet clients' investment demands."

"Pulse can now provide equity crowdfunding services to compliment this strategy," the statement said.

Crowd-sourced funding rules were enacted by the Federal Government in 2017. They allow small unlisted companies to offer shares (up to $5 million) in any 12-month period while being exempted from certain disclosure requirements in the Corporations Act. It attempts to reduce the regulatory burden for small companies to raise capital, BIR Financial said.

Under the rules there is an investor cap of $10,000 per individual company per year for retail investors. A crowd-sourced funding offer must only be offered through a regulated platform provider with correct AFSL authorisation.

BIR Financial said the seed investment market in Australia has been serviced primarily through friends and family raisings.

"Pulse Markets believes that crowd-sourced funding will provide a more efficient, effective and consistent way of raising early stage capital allowing an equitable entry for all people into investing in innovation," the ASX statement said.

Read more: BIR FinancialPulse Marketsmanaged accountsASICASX
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