The long-awaited fintech regulatory sandbox could be a step closer with the release on Wednesday 8 June 2016 of the consultation paper promised in the Federal Budget.
In addition to the sandbox proposal, the paper - "Further measures to facilitate innovation in financial services" - sets out two other proposals: third-party sign-off for small, heavily automated businesses, and more guidance on making a submission on a responsible manager's knowledge and skills.
Our initial view of the consultation paper is that it will be of quite limited application, and will not assist with a range of other regulatory hurdles facing fintech innovators (including KYC, ACL and responsible lending obligations). Although many of these are not within ASIC's powers, it highlights the need for a cross-regulator approach to these matters if Australia is actually to take full advantage of the so-called "ideas boom".
