An enhanced regulatory fintech sandbox has been released to help firms overcome the initial regulatory burden and costs of licensing that might otherwise hinder innovative offerings.
An announcement by Federal Treasurer Scott Morrison on Tuesday said the Turnbull Government had released the exposure draft legislation and regulations that would allow firms to test a wider range of new and innovative fintech products and services.
The announcement said it would include:
- Providing holistic financial advice in relation to superannuation, life insurance and domestic and international securities;
- Issuing and facilitating consumer credit;
- Issuing non-cash payment products; and
- Providing a crowd-funding service.
“The 24-month testing timeframe will improve firms’ ability to evaluate the commercial viability of new concepts, promoting greater competition and delivering more choice for Australian consumers,” the announcement said.
“Firms will need to adhere to robust consumer protections and disclosure requirements including responsible lending obligations, best interests duty, and the need for adequate compensation and dispute resolution arrangements.”
Consultation on the draft legislation and explanatory memorandum is open until 3 November 2017, and on the draft regulations and explanatory statement until 1 December 2017.
