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.
"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."
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.