The possible new rules would produce a controlled environment or sandbox to enable start-ups to begin in the market with limited permission before being accord a full license. A commissioner at the Australian Securities and Investment Commission (ASIC), Cathie Armour said “we are going to publish a public consultation on some possible adjustments to the regulatory framework which might be of particular aid to financial technology businesses”. This will obviously have regulations applied on them but potentially for a finite period of time, some aspects of regulation will not be applied just to enable examination. ASIC is studying how it could use waivers and no-action observations to apply the sandbox framework, which it expects to rise and running by the end of the year.
IN addition, ASIC has been preparing the plan in consultation with financial technology experts, including Alex Scandurra, CEO of Sydney financial technology hub Stone & Chalk. Alex comments, “we are studying the opportunity to produce a sandbox that enables start-ups to validate, fast prototype and engage with different customers groups prior to having to engage in a formal licensing process”. The U.K. Financial Conduct Authority (FCA) said it would launch a regulatory “sandbox” for financial technology firms to produce a safe scope in which authorized firms can examine to verify their business models.