ASIC will be given greater flexibility to make decisions about how exemptions operate under its regulatory sandbox framework.
The Government last week introduced a bill, Treasury Laws Amendment (2018 Measures No.2) Bill 2019, to enhance the sandbox regime, allowing more businesses to test a wider range of products and services – and for a longer time.
The change is intended to allow businesses to confirm their concept through initial market testing prior to seeking the appropriate licence from ASIC.
According to the explanatory memorandum accompanying the bill: “The enhanced regulatory sandbox recognises that innovation is not limited to new offerings unseen in the market, but may encompass improvements to specific elements of a product or service.”
ASIC has had a regulatory sandbox framework since 2016, allowing fintechs to test their products and services without having to obtain a financial services or credit licence.
market changes and develops, it is important to have the flexibility to make
changes to the types of eligible products and services to ensure the exemption
operates appropriately,” the memorandum says.