A few days after the Singapore regulator announced a consultation paper on proposed guidelines for a «regulatory sandbox» their Australian counterparts are thinking alike.
The Australian Securities and Investments Commission (ASIC) has just released a consultation paper on proposed further measures to facilitate innovation in financial services, including a regulatory sandbox licensing exemption.
Testing Without a Licence
The Aussie regulator will allow fintech start-ups to test their ideas with real customers for a period of six months without having to hold a financial services licence, under a new «regulatory sandbox» proposed by Treasurer Scott Morrison.
«ASIC is committed to facilitating innovation in financial services, especially where it has the potential to improve consumer outcomes. We are looking forward to engaging with the industry on the proposed measures,» said John Price, ASIC Commissioner.
Fintech Innovations to Asia?
Building on ASIC's experience through its Innovation Hub, ASIC has identified some barriers faced by new financial technology (fintech) businesses seeking to enter the financial services market. These barriers include speed to market and meeting the organisational competence requirements of a licensee.
The sandbox was proposed by the federal government as part of its plan to create an technologically driven innovation-based economy.
Morrison has pointed to fintech as a driver of microeconomic reform which can boost productivity and competition in financial services and potentially boost Australian service exports to Asia.
