The Australian Securities and Investments Commission has rolled out what it calls a unique waiver allowing fintechs to test financial products and services on retail clients.
In a press release today the Australian Securities and Investments Commission (ASIC) said it has released class waivers to allow eligible financial technology businesses to test certain specified services without holding an Australian financial services or credit licence.
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.
More Pathways for Fintech's
ASIC has also released Regulatory Guide 257 Testing fintech products and services without holding an AFS or credit licence (RG 257), which contains information about Australia's 'regulatory sandbox' framework.
«Fintech and start-up businesses now have more pathways than ever to begin testing the viability of innovative financial services and credit services on consumers, before incurring many of the regulatory costs normally associated with running their business,» said John Price ASIC Commissioner.
Collaboration Between Singapore and Australia
ASIC followed the Monetary Authority of Singapore (MAS) in establishing a fintech sandbox earlier this year. MAS and ASIC have also agreed to help financial technology businesses explore opportunities in their respective markets.
The agreement enables innovative fintech companies in Singapore and Australia to establish initial discussions in each other’s market faster and receive advice on required licences, helping to reduce regulatory uncertainty and potentially, time to market.
