15 December 2017
visit www.avoka.com

Australian Government consults on fintech sandbox

24 October 2017  |  3295 views  |  0 Source: Australian Government

The Turnbull Government has today released exposure draft legislation and regulations to create an enhanced regulatory sandbox to support innovation in financial services.

This proposed legislative package will be a game changer for competition in the financial services sector and continues the Turnbull Government's strong support of Australian FinTech which has helped Australia become the second largest alternative finance market in the Asia-Pacific.

As announced in the 2017-18 Budget, the FinTech regulatory sandbox will allow a broad scope of activities to be tested without the need to meet all the existing licensing requirements of the Australian Securities and Investments Commission. The enhanced regulatory sandbox will help firms overcome the initial regulatory burden and costs of licensing that may otherwise hinder innovative offerings.

This is an exciting opportunity that will further cement Australia's position as a leading FinTech hub in the Asia‑Pacific.

Under the Government's legislative framework, firms can test a wider range of new and innovative FinTech products and services, including:

providing holistic financial advice in relation to superannuation, life insurance and domestic and international securities;
issuing and facilitating consumer credit;
issuing non-cash payment products; and
providing a crowd-funding service.

The 24‑month testing timeframe will improve firms' ability to evaluate the commercial viability of new concepts, promoting greater competition and delivering more choice for Australian consumers.

Firms will need to adhere to robust consumer protections and disclosure requirements including responsible lending obligations, best interests duty, and the need for adequate compensation and dispute resolution arrangements.

The exposure drafts and explanatory material are available on the Treasury website.

Consultation on the draft legislation (and explanatory memorandum) is open until 3 November 2017, and on the draft regulations (and explanatory statement) until 1 December 2017.

Comments: (0)

Comment on this story (membership required)

Related blogs

Create a blog about this story (membership required)
visit www.response.ncr.comvisit www.thomsonreuters.infovisit www.niceactimize.com

Top topics

Most viewed Most shared
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
10191 views comments | 16 tweets | 25 linkedin
satelliteRipple completes XRP Lockup
9316 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
8911 views comments | 17 tweets | 36 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
7590 views comments | 20 tweets | 11 linkedin
Australian Government amends AML rules to cover digital currenciesAustralian Government amends AML rules to...
7216 views comments | 15 tweets | 24 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job