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?