Archive: February 9, 2017

1
Found out that you can’t play in the sandbox?
2
Switzerland proposes to reduce barriers to market entry for FinTechs
3
Australian marketplace lending update

Found out that you can’t play in the sandbox?

By Jim Bulling and Michelle Chasser

The Australian Securities and Investment Commission’s (ASIC) regulatory sandbox is up and running exempting qualifying businesses from holding an Australian financial services licence or Australian credit licence. There are a number of reasons why a business may not be eligible including:

  • the business will issue the financial products;
  • it is likely that there will be more than 100 retail clients
  • it is likely that the value of the financial products will be more than $5 million;
  • 12 months testing will not be sufficient; or
  • the financial products the business deals with fall outside the eligible products for the sandbox which are:
    • simple managed investment schemes;
    • non-cash payment systems issued by a bank;
    • listed securities;
    • government bonds; and
    • unsecured loans.

So what are your options if you don’t meet all the eligibility criteria but don’t want to obtain your own licence?

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Switzerland proposes to reduce barriers to market entry for FinTechs

By Jonathan Lawrence

During its meeting on 1 February 2017, the Swiss Federal Council initiated a consultation on amendments to the Banking Act and Banking Ordinance in the FinTech area. The aim is to ensure that barriers to market entry for FinTech firms in Switzerland are reduced and that the competitiveness of the Switzerland as a financial centre is enhanced. The consultation will last until 8 May 2017.

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Australian marketplace lending update

By Jim Bulling and Michelle Chasser

In a recent report on licensing applications the Australian Securities and Investment Commission (ASIC) revealed that it has granted 7 Australian financial services licences (AFSL) and 3 Australian credit licences to marketplace lenders between January and June 2016. A further 3 AFSL applications are currently being considered. Previously, 6 licenses were granted between 1 July 2015 and 31 December 2015. This indicates that the number of entrants to the Australian market continues to grow.

Unlike other jurisdictions such as New Zealand, Australia does not have specific marketplace lending legislation. Marketplace lenders have had to adapt to fit within the existing financial services framework. There are a number of business models that can be used to facilitate marketplace lending.

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