Australian Fintech businesses would be aware of ASIC's
existing Fintech Regulatory Sandbox. In this blog, we refer to this
as the "Existing Sandbox" - see a
previous blog we wrote defining ASIC's Existing Sandbox.
The Existing Sandbox was designed for certain
Fintech startup businesses to avoid AFS licensing requirements
for one year subject to retail client caps, notification
requirements and client exposure limits.
However, the Existing Sandbox has not proved to be greatly
popular. In part, this may be because it does not allow for the
issuing of financial products, only general and personal advice in
relation to a highly restricted list of financial products (for
example, bank deposits, home and contents insurance, listed shares
and government bonds) and dealing (other than issuing and
varying).
