On 12 December 2017, ASIC released a review of its regulatory
sandbox. The review proposes to retain ASIC class waivers (known as
the fintech licensing exemption) introduced to allow financial
technology (fintech) businesses to test particular
services, without holding an Australian financial services or
credit licence.
ASIC's consultation paper may be accessed
here.
Currently, the fintech exemption allows eligible businesses to
test specified services for up to 12 months with up to 100 retail
clients, provided that they meet certain consumer protection
conditions and notify ASIC prior to the commencement of business.
The exemption is intended to reduce barriers to innovation by
allowing new businesses to test their services in an environment
with a reduced regulatory burden. Viability of innovative financial
services and credit services can be tested, before the regulatory
costs of running such a business are incurred.
