Fintechs were already in the AFSL fast-line

Financial technology companies which have engaged with the Australian Securities and Investments Commission's (ASIC's) Innovation Hub have been getting license approval 45 per cent faster than other license applicants, according to ASIC chairman, Greg Medcraft.

Addressing a Sydney dinner this week just a day ahead of ASIC releasing class waivers to allow eligible financial technology (fintech) businesses to test certain specified services without holding an Australian financial services or credit licence, Medcraft claimed the regulator's Innovation Hub had been a success.

"In the last year alone we've engaged with 109 different entities — robo-advisers (25), marketplace lenders (22), payment system and credit providers (17 and 11) and equity sourced crowdfunders (nine)," he said.

Related News:

"In June we opened up the Hub to regtech entrepreneurs and we'll be engaging with them in a roundtable in the new year to better understand developments."

"Our statistics on the licensing of fintechs indicate that — on average, without formal assistance — it takes 205 days for a licence applicant to receive a draft licence. However, fintechs who have engaged with the Innovation Hub prior to submitting their application get approved for a licence, on average, in 110 days — or nearly 45 per cent faster than if they hadn't engaged with the Innovation Hub."

Related Content

Super funds don’t want to cross-subsidise planning fails

The superannuation industry has made clear it does not want to cross-subsidise bad behaviour in other sectors of the financial services industry such ...more

Investors should avoid ETF trap

Investors should avoid the exchange-traded fund (ETF) trap as the move to passive strategies, with an overexposure to overtly-similar passive investme...more

SMSF members to increase by one million

A million Australians are expected to enter into a self-managed superannuation fund (SMSF) in the next decade, according to the SMSF Association.Speak...more




Why have the AFSL regime when you offer exemptions, its still clients money that is at risk. We pay tens of thousands for the right to advise..but if you use a robot and charge stuff all its ok is it? Im all for new tech, but on a level playing field please.

Add new comment