Zed Seselja (ACT, Liberal Party, Assistant Minister for Treasury and Finance) Share this | Hansard source

I would say a couple of things in response. Obviously, by their nature, investments in small unlisted companies, including CSF companies, will be illiquid. All CSF offers must include a risk warning that discloses to investors the risk that their investment will be illiquid. However, the bill includes provisions to allow CSF shareholders to transfer their shares to other people without counting towards the 50-shareholder cap that exists for proprietary companies if that transfer occurs before the company is listed on a financial market. This provides some flexibility for CSF shareholders who may wish to exit their investment. If over time a secondary market for CSF shares develops, the operator of that market will need to obtain an Australian market licence and comply with relevant consumer protection requirements.

Internationally we see secondary markets emerging, firstly by trading between existing shareholders. In addition, I think you asked whether financial advice could be provided. Crowdfunding intermediaries are not allowed to provide advice on crowdfunding offers. This is to mitigate potential conflicts of interest between the intermediary and investors.