ASIC released a review of its regulatory sandbox yesterday, which proposes to retain its fintech licensing exemption but make no changes to the sandbox’s current set-up.
The regulator said it would not be making changes to the sandbox until the government follows through on Treasurer Scott Morrison’s announcement of “enhancements” to the regime on 24 October 2017.
Under the current licensing exemption, eligible businesses are granted a permit to test specified services for up to 12 months with up to 100 retail clients.
The fintech sector has been critical of the sandbox, citing its low take-up since it began operating on 15 December 2016.
Commenting on yesterday’s consultation paper, ASIC commissioner John Price said that to date just four fintech businesses have used the licensing exemption.
“Relying on the exemption, one business tested its financial services (providing advice and dealing in listed Australian securities); two businesses are currently testing advisory and dealing services in deposit products; and one business is testing acting as an intermediary and providing credit assistance,” Mr Price said.
“In addition, over a dozen fintech businesses have also contacted ASIC about using the fintech licensing exemption.”
The consultation period on ASIC’s proposal to make ‘no changes’ to the sandbox closes on 27 February 2018.
