Assistant treasurer Josh Frydenberg has listed peer-to-peer lending as an area that requires greater regulatory oversight and “answers” from government and business.
Speaking recently at the Stockbrokers Association of Australia conference in Sydney, the minister listed the rise of P2P lending as a potentially disruptive force that needs appropriate attention, along with equity crowdfunding.
“New technologies and business models have the potential to be both transformative and highly disruptive,” Mr Frydenberg said.
“Will old regulatory frameworks work effectively in emerging environments? Will they stifle rather than facilitate innovation? Will they appropriately manage associated risks?
“The answers to these questions have changed rapidly over recent years as contemporary business models are challenged.”
The government is set to introduce a legislative framework for equity crowdfunding later this year.