O’Dwyer invites offshore players into the sandbox
The extension of Australia’s so-called financial services FinTech regulatory sandbox to overseas entities has been canvassed by the Minister for Revenue and Financial Services, Kelly O’Dwyer, in discussions in Hong Kong.
Addressing a Hong Kong financial services forum, O’Dwyer said the Government was introducing legislation to broaden the scope of the sandbox to allow more businesses, including foreign companies registered in Australia, to test a wider range of new FinTech products and services.
The Government’s move to legislate a broadening of the FinTech sandbox follows on from its initial implementation by the Australian Securities and Investments Commission (ASIC) in December, 2016.
The sandbox provides financial services businesses the ability to test “innovative” and largely technology-based products for up to 12 months without needing to apply for a licence – something which the Government believes will reduce the time it takes to get such products to market.
Recent industry feedback has seen organisations such as the Financial Planning Association (FPA) warning that organisations who are granted a licence exemption should be first made to prove the product or service is genuinely innovative.
The FPA said that there was a danger that the sandbox could expose consumers to risk from inexperienced advice and product providers.
AUTHOR
Mike Taylor
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