Fintech sandbox to be reviewed in a year

ASIC’s regulatory sandbox for testing fintech services will run for another year before the framework is reviewed.

It will be another 12 months before the corporate regulator reviews its regulatory sandbox framework that allows fintech businesses to test certain services for up to a year without an Australian financial services or credit licence.

Speaking at the British Australian Fintech Forum in London on Thursday, Australian Securities and Investments Commission (ASIC) chair, Greg Medcraft, said the regulator would seek feedback form industry and other stakeholders as part of the review process.

The sandbox was launched in December 2016 and Medcraft said it would improve the opportunity for Australian fintechs in three key areas:

Speed to market – by providing an environment for testing without a licence;
Organisation competency – by bridging knowledge gaps with more examples and also greater flexibility; and
Access to capital would be addressed to reduce testing costs.

“Ultimately, entities using the sandbox exemption will have the opportunity to prove a business model and investigate what strategy will best work for their business,” he said.

 

 

Related Stories

Australia secures fintech agreement with Japan
The framework for cooperation facilitates a direct channel between Japan’s Financial Services... Read More
Hong Kong & Australia ink fintech cooperation deal
The agreement, signed earlier today, allows the Hong Kong Securities and Futures Commission (SFC)... Read More
Industry bodies approve regulatory tech strategy
A series of initiatives on regulatory reform in the technology and fintech sectors outlined be the... Read More
Malaysia’s central bank, Bank Negara had issued licenses to four companies to operate within its regulatory sandbox.
Malaysia opens fintech sandbox
Following the launched of Bank Negara’s Financial Technology Enabler Group (FTEG) unit overseeing... Read More

Comments