19 June 2018
Visit www.gemalto.com

Asic launches licence exemption scheme for fintechs

15 December 2016  |  10880 views  |  0 Sydney

Australia's securities watchdog has released a number of waivers that will enable eligible fintechs to test services without the need to hold an Australian Financial Service licence or to make individual applications to the regulator.

Under the scheme, fintechs will be able to test their service for up to 12 months with up to 100 retail clients on the condition that they meet a number of consumer protection standards and notify the regulator before commencing.

The Australian Securities and Investment Commission (ASIC) claims that its sandbox initiative is the first such scheme from a major jurisdiction and it hopes it will encourage more innovation in its banking sector.

"Fintech and start-up businesses now have more pathways than ever to begin testing the viability of innovative financial services and credit services consumers, before incurring many of the regulatory costs normally associated with running their business," said ASIC commissioner John Price.

While ASIC may claim that its licensing exemption scheme is new, the concept of regulatory sandboxes is proving increasingly popular as jurisdictions compete to attract fintech startups. This is especially so in Asia Pacific where Malaysia, Hong Kong, Singapore and Thailand have all launched regulatory sandbox schemes this year.

In addition the Financial Conduct Authority in the UK launched its own sandbox scheme back in 2014. However, while the majority of industry observers have praised regulators for a proactive approach to overseeing fintech development, others have warned that sandbox schemes risk favouring the chosen applicants over others and creating an uneven playing field.


Ultimately, it is the technology that should be the differentiating factor not the standing with the regulator, they warn.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Abu Dhabi opens fintech RegLab

Abu Dhabi opens fintech RegLab

02 November 2016  |  6899 views  |  0 comments | 3 tweets | 14 linkedin
Malaysia sets out fintech sandbox framework

Malaysia sets out fintech sandbox framework

19 October 2016  |  18447 views  |  0 comments | 9 tweets | 5 linkedin
Thailand sets up fintech sandbox

Thailand sets up fintech sandbox

22 September 2016  |  10034 views  |  0 comments | 19 tweets | 8 linkedin
HKMA to set up fintech sandbox and innovation hub

HKMA to set up fintech sandbox and innovation hub

06 September 2016  |  8769 views  |  0 comments | 15 tweets | 12 linkedin
Singapore regulator proposes fintech sandbox

Singapore regulator proposes fintech sandbox

06 June 2016  |  9076 views  |  1 comments | 15 tweets | 22 linkedin
FCA opens regulatory sandbox

FCA opens regulatory sandbox

09 May 2016  |  12465 views  |  0 comments | 18 tweets | 29 linkedin
Asic to establish regulatory sandbox

Asic to establish regulatory sandbox

04 May 2016  |  7895 views  |  0 comments | 5 tweets | 9 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit iliad-solutions.com/Visit equensworldline.comVisit http://go.jumio.com/finextraAd

Who is commenting?

A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: Monzo launches bill tr...
A Finextra member Finextra Member Commented on: NatWest taps Open Bank...
A Finextra member Finextra Member Commented on: HSBC promises $17bn in...

Top topics

Most viewed Most shared
10,000 jobs could be lost to robots says Citi10,000 jobs could be lost to robots says C...
48743 views comments | 44 tweets | 35 linkedin
Ripple exec says DLT not ready for banks...yetRipple exec says DLT not ready for banks.....
10496 views comments | 9 tweets | 32 linkedin
UK launches £2.5bn startup initiativeUK launches £2.5bn startup initiative
9427 views comments | 30 tweets | 26 linkedin
HSBC promises $17bn investment in technologyHSBC promises $17bn investment in technolo...
8317 views comments | 8 tweets | 21 linkedin
Live: EBAday2018, day oneLive: EBAday2018, day one
8138 views comments | 6 tweets | 5 linkedin

Featured job

to GBP £90K base, double OTE (estimate)
London, UK or Europe

Find your next job