The Australian Securities and Investment Commission (ASIC) had previously committed to review its regulatory sandbox and Fintech licensing exemption and upon review, officials have proposed to maintain the current status. The regulatory Fintech sandbox was introduced in December 2016 and enables eligible firms to test services in a structured environment.
ASIC has launched a consultation (embedded below) seeking feedback on the Fintech licensing exemption with comments being accepted until February 27, 2018. Feedback may be forwarded to firstname.lastname@example.org.
ASIC says the current Fintech licensing exemption allows eligible businesses to test specified services for up to 12 months with up to 100 retail clients, provided they also meet certain consumer protection conditions and notify ASIC before they commence the business.
To date, four Fintech businesses have used the Fintech licensing exemption. In addition, over a dozen Fintech businesses have also contacted ASIC about using the Fintech licensing exemption.
The ASIC review coincided with Treasury’s own consideration of feedback to the Government’s enhanced sandbox proposal. The Government’s draft proposal would extend the scope of the ASIC’s Fintech licensing exemption in a number of areas, including the testing period, caps, limits and number of times a business can make use of the sandbox.