Powered by MOMENTUM MEDIA
subscribe to our newsletter
ASIC consults on fintech ‘sandbox’

ASIC consults on fintech ‘sandbox’

The corporate regulator has released the details of its proposed regulatory ‘sandbox’ that would see fintech start-ups exempted from ASIC’s licensing requirements for six months.

ASIC has released Consultation Paper 260: Further measures to facilitate innovation in financial services which proposes to grant businesses “conditional, industry wide relief” from licensing conditions for six months.

The “regulatory sandbox exemption” will be limited to companies that provide financial advice about, or arrange for other persons to deal in, certain liquid products, according to ASIC.

Fintech start-ups that operate in the ‘sandbox’ testing environment will be required to comply with limits on the number of retail investors and their exposure to financial products.

Participating businesses will also have to maintain consumer protections, obtain ‘sponsorship’ from an ASIC-approved organisation, and notify the regulator before they commence testing.

“Businesses that do not meet the terms of the industry-wide relief will be able to apply for individual, tailored exemptions under our existing policies,” ASIC said.

The closing date for submissions from interested parties on the consultation paper is Friday 22 July.

[Related: ASIC forms fintech partnership with UK regulator]

ASIC consults on fintech ‘sandbox’
mortgagebusiness

Latest News

The financial services royal commission and the Productivity Commission inquiry into competition in the Australian financial system will lik...

The Reserve Bank of Australia has sought to address the dispute over the cause of the recent drop in property prices. ...

COBA has renewed calls for a “proportionate” regulatory regime that doesn’t “squeeze out” smaller lenders. ...

FROM THE WEB
podcast

LATEST PODCAST: The federal court system v HEM, a new government-backed SME fund

Is enough being done to ensure responsible lending?