ASIC statement

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Angel Loop Queensland, an initiative of Angel Loop Foundation is a registered charitable institution in Queensland for the promotion of a culture of Innovation and Entrepreneurship in Australia. Innovation charities fall within the "Advancing Commerce" charitable classification. As required by section 6 of the Charities Act 2013 (c'th) the purpose must be for the public benefit in that “that innovative ideas generally be carried through to successful commercial fruition” “which is not only beneficial to the public generally but also a direct benefit to a section of the public, being those members of the public with the inclination and ability to make inventions for commercial purposes and invest in them”. 

Angel Loop Queensland believes strongly that Angel Investment is ancillary (a necessary requirement) in bringing more Innovations to successful commercial fruition to enable the yielding of the public benefit. All "members of the public with the inclination and ability to make investments" should be provided with a pathway to participate.  "equally so that the public generally may enjoy the benefits that the ready availability of new and improved products may bring to increase their material well being.”  

Angel Loop Queensland believes in strict compliance with the Corporations Act 2001. Moreover, Angel Loop agrees with ASIC on the need to ensure that all Angel Investors have the suitable financial literacy to understand the risks associated with making Angel Class Investments. However to solely base financial literacy upon wealth is not only discriminatory, but it also is not in the public's best interests "in bringing (more) innovations to successful commercial fruition".  Section 708 of the Corporations Act describes a number of methods to attain the classification of "Sophisticated" especially section 10 which permits recognition through prior experience or education. Angel Loop believes this is the best route forward to enable greater participation in Angel Investing and the culture of innovation to flourish. See the available Education programs.  We recognise, that while financially literate some investors may have limited "ability" to invest and as such for tax purposes ITAA 1997 section 360-20 should apply to protect these investors.

Angel Meetings held prior to 1st April 2022 were held under ASIC Class Order [CO 02/273] Business introduction and matching services, which gave conditional relief from the fundraising, financial product disclosure, anti-hawking, and advertising requirements in the Corporations Act 2001. As part of this, it gave relief to the host of the Angel Meeting (Angel Group) from the anti-hawking provisions of the Corporations Act. With its repeal, the host of a meeting where offers of securities are made is criminally liable to ensure and must publicly announce at the start of every meeting, that only Sophisticated Investors are permitted to take up any such offers presented at the meeting.  Angel Loop supports our Angel Groups by certifying Sophisticated status via the AQEI (Australian Qualified Early-Stage Investor) regime and ensuring that these Investors are the only persons permitted to take up such offers to Invest. 

To comply with our Charitable purposes, all meetings are open to the public. Any member of the public may register to attend a meeting as "the consequent public exemplification of the successful inventive process serves to encourage and entrench innovative initiative in the community" as "the assistance given to individual inventors is educational, informative and practical."  that said, only sophisticated investors are permitted to invest.

Angel Loop Ltd (ABN: 38 618 764 202) is not currently an ACNC endorsed Charity. Read the AAT decision here.  Angel Loop affirms that this decision is an incorrect interpretation of the Test Case. Angel Loop contends that limiting charitability to merely encouragement is too remote moreover deficient to the achievement of the public benefit of "Bringing Innovations to successful commercial fruition" as required by section 6 of the Charities Act 2013.

The Commissioner of Taxation v The Triton Foundation [2005] FCA 1319      

Section 708 Corporations Act 2001

Section 360-20 ITAA Act 1997