AFSL Solutions for Australian Crowdfunding Services | Pre-licensing Assessment | Crowdfunding AFSL Application Management | Post-licensing Risk and Compliance Support

We offer a comprehensive set of solutions to help you obtain and maintain an Australian Financial Services Licence for Crowdfunding Platforms (AFSL) issued by the Australian Securities and Investments Commission (ASIC), tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• ASIC regulated crowdfunding platforms' obligations covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our regulatory licensing solutions to help you navigate the complexities of the AFSL framework for crowdfunding platforms in a commercially oriented and goal-focused manner, providing effective support for all stages of the Australian crowdfunding platforms’ licensing process, including but not limited to the following aspects:

• Crowdfunding Platform’s AFSL Guidance: Advising on a wide range of aspects associated with Australian crowdfunding licensing as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:

• Drafting the necessary policies and procedures to help you comply with the crowdfunding platform’s AFSL requirements and the financial markets' regulations
• Developing internal controls to help you meet your obligations under the AFSL framework for crowdfunding platforms

• Crowdfunding Platform’s AFSL Application Support: Covering the entire licensing process
• Post-licensing Support: Covering

• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

Service Coverage

This page is about the Australian Crowdfunding AFSL. In Australia, crowdfunding businesses and platforms, must obtain an Australian Financial Services Licence (AFSL) from ASIC. This licence authorises them to operate a crowdfunding business and offer it to retail and non-retail clients. We offer comprehensive support for a wide range of crowdfunding AFSL applications tailored to meet the specific needs of the following businesses:

• Equity Crowdfunding Platforms
• Lending-Based Crowdfunding Platforms
• Rewards-Based Crowdfunding Platforms
• Donation-Based Crowdfunding Platforms
• Real Estate Crowdfunding Platforms
• Debt Crowdfunding Platforms
• Royalty-Based Crowdfunding Platforms
• Hybrid Crowdfunding Platforms
• Community-Based Crowdfunding Platforms
• Microfinance Crowdfunding Platforms
• P2P Insurance Crowdfunding Platforms
• Broker-Dealer or Funding Portals

Given that crowdfunding platforms often provide peer-to-peer lending services, it is worth mentioning that we also offer AFSL solutions for P2P services and platforms. For more information, please visit our AFSL Solutions page for P2P Lending.

You can find more information about our Australian crowdfunding platforms' licensing solutions below.

 

Crowdfunding Platform’s Licensing Preparation

Pre-licensing Compliance Assurance

Our crowdfunding platform's AFSL solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for a crowdfunding platform's AFSL
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the Australian crowdfunding licensing process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your crowdfunding platform’s AFSL, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• Crowdfunding AFSL Application Plan: We help you establish a roadmap to effectively meet the crowdfunding platform's AFSL requirements

 

Crowdfunding Platform’s AFSL Guidance

Selecting the right compliance model is crucial not only for navigating the licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our Australian crowdfunding platforms’ licensing solution covers:

• Compliance Model Selection: To help you best comply with the AFSL framework for crowdfunding platforms and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the licensing requirements for crowdfunding platforms and other applicable ASIC regulated crowdfunding platforms' obligations, keeping in mind your specific circumstances, available resources and business goals.

 

Entering AFSL Regulated Environment

We help businesses transition from an unregulated environment to operating under the AFSL framework for crowdfunding platforms, helping them meet their obligations as a crowdfunding platform's AFSL holder.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the AFSL framework for crowdfunding platforms' requirements. Our focus areas for this service include:

• New businesses
• Existing crowdfunding platforms operating in unregulated markets
• Crowdfunding platforms expanding into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to introduce crowdfunding as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain compliant with ASIC regulated crowdfunding platforms’ obligations globally.

 

Crowdfunding Platform’s AFSL and Wholesale Markets

Getting a retail crowdfunding platform's AFSL may not always be the best fit for all. For example, a retail market expansion may not always align with your goals or the products you offer.

Operating in the wholesale environment can sometimes be a more suitable option. We offer a wider range of risk and compliance management solutions to assist crowdfunding platforms that:

• Operate in the wholesale markets
• Operate under an AFSL limited to wholesale client authorisations
• Offer services to sophisticated, eligible, and wholesale investors

We help these issuers manage compliance obligations that continue to apply under the wholesale-only AFSL framework, including:

• Financial and resource requirements under the Corporations Act
• Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) compliance
• Client classification and product governance obligations
• Marketing and promotional restrictions for retail offers
• Governance, risk management, and outsourced provider oversight

 

Crowdfunding AFSL Application

We can assist with your crowdfunding AFSL application through ongoing engagement in the Australian crowdfunding platforms’ licensing process:

• Document Compilation and Review: We compile and review all required supporting documents to support your crowdfunding AFSL application.
• Application Form Completion: We help you complete the forms so that all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your AFSL application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the Australian crowdfunding platforms' licensing.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the AFSL application process on track.

 

Resolving Crowdfunding Platform’s AFSL Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our crowdfunding platform's AFSL solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for Crowdfunding AFSL Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with crowdfunding platforms' regime requirements.
• Specific AFSL Conditions Compliance: We can help you manage additional conditions imposed on your crowdfunding platform's AFSL, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.
• Licensing Issues Handling: We address common licensing issues encountered during the Australian crowdfunding licensing process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for licensed crowdfunding platforms. Our services include but are not limited to:

Ongoing Risk and Regulatory Compliance

• ASIC Regulated Crowdfunding Platforms' Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the AFSL framework for crowdfunding platforms and other regulatory compliance obligations. You can visit our Compliance Consultancy Service page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for Crowdfunding Platforms.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:
• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option
• Compliance Training Solutions: We offer training programs to different teams on complying with:
• ASIC regulated crowdfunding platforms’ obligations for risk, regulatory compliance management, and crowdfunding regulations. You can visit our Compliance Training page for more information.
• Crowdfunding platforms’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for crowdfunding platforms. For more information, visit our Specialised AML/CFT Solutions page for Crowdfunding Platforms.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.
• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for Crowdfunding AFSL Holders

Crowdfunding AFSL holders are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in the different areas. The list below is not exhaustive:

 

Crowdfunding Platform’s AFSL and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more (as required under RG 104).
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil AIC regulated crowdfunding platforms’ obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks
• (as required under RG 259).
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the Australian crowdfunding platforms' licensing requirements (as required under Ch 6D of the Corporations Act 2001 and ASIC RG 261).
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the AFSL framework for crowdfunding platforms.
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We can help you implement controls to comply with capital adequacy requirements, helping your businesses meet ASIC regulated crowdfunding platforms' obligations for maintaining required financial resources (as required under RG 166).
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under the AFSL framework for crowdfunding platforms.
• Digital Payment Token Services: We can assist in developing controls to comply with regulations for digital payment tokens, cryptocurrencies, and digital assets, including obligations under the AFSL framework for crowdfunding platforms and AML/CFT requirements for transaction monitoring and reporting (see Information Sheet 225 (INFO 225) for more).
• Investor Classification and Eligibility Controls: We can help you implement processes to assess investor eligibility and classification (e.g. retail vs wholesale/sophisticated), in line with Australian crowdfunding limits, onboarding obligations, and investment caps (as required under RG 166).
• Offer Document and Disclosure Controls: We can help you implement controls for preparing and issuing offer documents or pitch materials, including jurisdiction-specific disclosure requirements under relevant crowdfunding or securities legislation.

 

Crowdfunding Platform’s AFSL and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with Australian crowdfunding platforms’ licensing obligations for overseeing outsourced services (as required under RG 104 and RG 105), also covering related obligations under AML/CTF compliance, ISO requirements, and more.
• Structures for Governance: We can help you establish effective governance structures to comply with ASIC regulated crowdfunding platforms' obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with ASIC regulated crowdfunding platforms’ obligations for senior management and key staff conduct and competence.
• Maintaining Operational Resilience: We assist in developing continuity plans to meet ASIC regulated crowdfunding platforms’ obligations for operational resilience, helping critical business services withstand disruptions (as required under ASIC Report 708 and other publications).
• Managing Technology Risks: We provide guidance on technology risk management obligations under the AFSL framework for crowdfunding platforms.
• Platform Access and Due Diligence on Issuers: We can help you develop onboarding, due diligence, and monitoring controls for businesses or issuers raising funds through your platform, including AML/CTF obligations, background checks, and suitability assessments.

 

Crowdfunding Platform’s AFSL and Market Integrity/Transparency Requirements

• Standards for Market Conduct: We can help you implement controls for ASIC regulated crowdfunding platforms’ obligations to maintain fair and transparent market conduct, including preventing manipulation and insider trading.
• Principles for Fair Treatment: We can help you implement controls to comply with expectations that cover adherence to principles of fair treatment and transparent communications with clients.
• Standards for Conduct and Disclosure: We can help you comply with Australian crowdfunding platforms’ licensing standards for conduct and disclosure.
• Product Suitability and Governance: We can establish tailored controls to help licensed crowdfunding platforms comply with product suitability obligations.
• Protection of Client Assets: Where escrow is outsourced or not in scope, we can help you comply with crowdfunding platforms' licensing obligations to protect and segregate client assets.
• Resolution of Disputes: We can help you establish effective mechanisms for dispute resolution and complaints management, particularly for retail clients (as required under RG 271).
• Advertising and Communications Oversight: We can help you develop controls for your marketing and promotional materials to ensure compliance with restrictions on advertising crowdfunding offers, including social media monitoring and fair representation of investment risks.

 

 

Crowdfunding Platform’s AFSL and Resource Management Obligations

We can help you comply with the following requirements of the AFSL framework for crowdfunding platforms:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:
• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, trading, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Staff Vetting and Rescreening: We can help you develop a framework for vetting and rescreening staff in line with the requirements of the licensing regime, AML/CFT laws, and other applicable regulations, with checks calibrated to the level of risk and responsibility associated with each role.
• Key Personnel Assessment: We can help you assess key personnel's skills, qualifications, and experience to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, and crowdfunding regulations.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.
• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on licensing obligations, market integrity, and client interaction standards.
• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.
• Investment Cap and Transaction Limits Controls: We can help you implement automated and manual controls to monitor investor contribution limits, deal caps, and maximum investment thresholds required by the licensing regime

 

Crowdfunding Platform’s AFSL and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • Australian crowdfunding licensing obligations, including those under the RG 78.
  • Australian crowdfunding platforms' AML/CTF obligations (SMRs, cross-border transaction reports (IFTIs), cash transaction reports TTRS, and other reporting obligations)
  • ASIC regulated crowdfunding platforms' obligations under financial market regulations
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the AFSL framework for crowdfunding platforms, applicable operational standards, and more.

 

Related Licensing Solutions

We assist in obtaining crowdfunding AFSL equivalents in the following jurisdictions:

• Singapore: For more information on the Singaporean equivalent of a crowdfunding AFSL, the Capital Markets Services (CMS) Licence, you can visit our Singaporean Crowdfunding Licence page.
• United States: We offer USA-based crowdfunding licensing options. Generally, crowdfunding platforms in the US are regulated by the Securities and Exchange Commission (SEC) under the Jumpstart Our Business Startups (JOBS) Act, specifically through "Regulation Crowdfunding".
• United Kingdom: For more information on the UK equivalent of a crowdfunding AFSL, the FCA Authorisation for Crowdfunding issued by the Financial Conduct Authority (FCA), you can visit our Crowdfunding FCA Authorisation page.
• New Zealand: For more information on the New Zealand equivalent of a crowdfunding AFSL, the New Zealand Crowdfunding Service Licence issued by the Financial Markets Authority (FMA), visit our FMA Crowdfunding Service Licence page.
• Prominent Financial Centres and Offshore Tax Havens: We also offer licensing solutions for crowdfunding platforms in the prominent financial centres and offshore tax havens, including:

• European Union
• Cayman Islands
• British Virgin Islands (BVI)
• Seychelles
• Bermuda
• Vanuatu
• Malta
• Isle of Man