ASIC Releases World-First Licensing Exemption for Fintech Companies

The Australian Securities and Investments Fee (ASIC) at the moment launched class waivers which is able to enable eligible fintech companies to check sure specified companies with out the necessity to maintain an Australian Monetary Companies (ASF) or credit score licence.

To this point, ASIC’s fintech licencing exemption is exclusive as no different main jurisdiction has applied such a category waiver, permitting eligible companies to inform the regulator after which begin testing with out the requirement for a person software course of.

The exemption displays ASIC’s dedication to facilitating innovation in monetary companies.

ASIC additionally launched a corresponding regulatory information entitled “Testing fintech services and products with out holding an AFS or credit score licence (RG 257)” which comprises details about Australia’s ‘regulatory sandbox’ framework.

ASIC Commissioner John Worth commented: “Fintech and start-up companies now have extra pathways than ever to start testing the viability of progressive monetary companies and credit score companies customers, earlier than incurring most of the regulatory prices usually related to operating their enterprise.”

Fintech Licencing Exemption

ASIC’s fintech licencing exemption permits eligible companies to check specified companies for as much as 12 months with as much as 100 retail shoppers, offered in addition they meet sure client safety circumstances and notify ASIC earlier than they begin their enterprise.

The exemption was initially proposed to facilitate innovation in monetary companies. ASIC amended its proposal in gentle of the suggestions acquired, together with extending the testing interval and increasing the merchandise in relation to which companies may be examined.

Companies which aren’t eligible for the fintech licencing exemption might search a person exemption. “Particular person functions are an necessary a part of Australia’s regulatory sandbox framework,” continued Worth. “For example, this feature is open to current licencees who want to take a look at an progressive services or products and adjust to a modified model of the legislation,” he added. 

Details about the companies lined by the fintech licencing exemption may be discovered on ASIC’s web site.

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