The Corporations and Markets Advisory Committee has released its report on crowd sourced equity funding, following extensive consultation. The report recognises the key role that CSEF may play in the development of this sector of the Australian economy through the use of internet-based funding. CAMAC's report provides a detailed regulatory blueprint, with proposals for creating a balanced legislative framework to promote innovative start-ups and other small-scale enterprises.The proposals are "deregulatory" in that they seek to overcome current legal impediments to Australian companies (issuers) raising funds through CSEF.Looking at similar jurisdictions, CAMAC noted the strong benefit in seeking broad cross jurisdictional regulatory guidelines, "to which Australia can make a useful contribution".Equally, lack of a supportive local regulatory environment for crowd sourced funding may result in worthwhile Australian entrepreneurs incorporating in other countries, or moving their businesses offshore, to enable their ideas or projects to be funded by the crowd.One of the report's proposals is that an eligible issuer may seek funds from the crowd by offering equity through a licensed online intermediary, provided:•    the offer does not exceed the issuer cap of A$2 million in any 12 month period; •    offer disclosure requirements are complied with; •    controls on advertising are complied with; •    the issuer does not lend to crowd investors to acquire shares; and •    any material adverse change concerning the issuer is notified.In addition, intermediaries would be prohibited from, for example: •    engaging in conflict of interest situations, including having an interest in the issuer or being paid in shares of the issuer or according to the amount of funds raised; •    providing investment advice to crowd investors; •    soliciting crowd investors to accept CSEF offers on their websites; and •    lending to crowd investors to acquire shares offered on their websites.