By Michelle Chasser and Felix Charlesworth
On 24 October 2017, the Federal Government released draft legislation and regulations (Draft Bill) enhancing the existing regulatory sandbox for current and emerging FinTech products and services.
This comes almost one year after the Australian Securities and Investments Commission (ASIC) established a sandbox which granted particular exemptions to FinTech businesses from obtaining an Australian Financial Services Licence (AFSL) and/ or an Australian Credit Licence (ACL) if certain conditions were met.
As projected in the 2017/2017 Federal Budget, the enhanced sandbox will expand the types of permissible activities and testing timeframe beyond the existing sandbox parameters established by ASIC. The purpose of this enhanced sandbox is to further promote Australia’s FinTech capability by supporting start-ups and innovative businesses to develop, test and launch their financial and credit services.