1. What kinds of businesses can use these services?

We are open to discussing any type of fintech startup or scaleup, provided the business meets certain criteria.

A business will be more likely to receive support through the Innovation Hub if it:

• is a financial technology (fintech) business;
• has not been trading under a licence from ASIC for more than 12 months;
• offers a potentially groundbreaking innovation; and,
• offers an innovation that provides a potentially better outcome for investors and consumers.

Regtech businesses are also encouraged to reach out to the Innovation Hub to discuss their product or service. ASIC does not endorse or certify regtech businesses or business models.

2. Will the information be kept confidential?

Yes. The law requires ASIC to take reasonable measures to prevent unauthorised use and disclosure of information we receive in confidence in connection with our statutory functions.

More information about this topic is available in Regulatory Guide 103 Confidentiality and release of information.

3. Can I publicly refer to assistance provided through the Innovation Hub?

ASIC does not object to you mentioning that we have provided informal assistance to you through the Innovation Hub. However, you should not create an impression (either explicitly or implicitly) that your business or services are in any way endorsed or approved by ASIC.

Also, you must not reproduce ASIC’s logo without our express written approval.

4. Can ASIC give me legal advice?

No, ASIC cannot give legal advice. However, ASIC can provide you with informal assistance. Help we can provide includes:

• providing an ASIC contact for your business during the pre-licence application, the licensing application phase and first year of being licensed;
• guidance and assistance during the pre-licence application phase, including meeting with senior staff to discuss the licence application process and any regulatory issues that the business has identified; and,
• guidance and assistance during your business’s first year of being licensed if required, for example if an application for a licence variation is being considered.

Resources are available on ASIC’s website to help you understand how ASIC interprets the laws it administers, and determine how they may apply to your startup.

1. Do I need an AFS licence?

Generally, if you carry on a financial services business in Australia, you will need to hold an Australian financial services (AFS) licence or an authorisation from an AFS licensee. Some exemptions from the requirement to be licensed may apply. For more information see Do I need an AFS licence?

2. Do I need an Australian credit licence?

If you engage in credit activities involving consumers you will generally need an Australian credit licence (credit licence) or an authorisation from a credit licensee before commencing business.

For more information see Do I need a credit licence?

3. I'm providing services related to consumer credit, but not act as a lender. Will I need a credit licence?

It depends. Some non-lenders do need a credit licence. If you 'act as an intermediary' or provide 'credit assistance', you will need a licence unless there's an exemption that applies to you. These terms are explained in more detail in Regulatory Guide 203 ‘Do I need a credit licence?’

In general terms, you may 'act as an intermediary' if you are take part in the process of securing credit for a consumer by preparing or passing on information. You may be an intermediary even if you do not have face-to-face contact with the consumer.

In general terms, you may be providing credit assistance if you assist someone in applying for credit/a consumer lease or are making suggestions to consumers about credit/consumer leases. If you provide credit assistance, you may also have what are known as 'responsible lending' obligations. This includes making reasonable inquiries about the consumer’s financial situation and taking reasonable steps to verify the consumer’s financial situation. More information on responsible lending.

4. Does ASIC have a preference to my business seeking an AFS licence or acting as an authorised representative of an AFS licensee?

No. ASIC does not have a preference whether your business has its own AFS licence or acts as an authorised representative.

If you are acting as an authorised representative you will need to meet the regulatory obligations of the AFS licensee that has appointed you, which are relevant to your business. Your AFS licensee will need to supervise the financial products and services you provide on their behalf. The AFS licensee will need to have sufficient expertise about your business to enable them to do this.

5. Can ASIC refer me to an AFS licensee willing to appoint me as an authorised representative?

No. We understand that some licensees offer an authorised representative appointment service. However, it is up to you to identify these licensees through your own research. ASIC’s Moneysmart website has a register of licensed financial advisers that you could refer to as a starting point.

6. How long does the licensing process take?

Once you make a licence application, you still need to go through the same process and assessment criteria that apply to all AFS and credit licence applications.

ASIC’s Service Charter outlines how long the licensing process can take. We aim to decide whether to grant or vary an Australian financial services or credit licence within 150 days of receiving a complete application (target: 70%). We also aim to decide 90% of complete applications within 240 days.

Please keep in mind that the time your application takes may differ depending on the quality and complexity of your application and proposed business.

High quality applications that contain all the information ASIC requires may be able to be processed more quickly.

Applications will typically take longer where:

• they raise complex or new policy issues
• the applicant has not provided all the information we need
• there has been past unlicensed conduct or non-compliance by the applicant, its directors, responsible managers or controllers
• we have concerns about the controllers, directors, or responsible managers that raise doubts about their character or whether the licensee is likely to comply with the financial services laws or operate its business in an efficient, honest and fair manner.

7. Can I tailor my licence to my specific needs?

Yes. The AFS licensing requirements are scalable to the size, nature and complexity of your business. The simpler and smaller your business is, the less onerous the requirements. One way of reducing the compliance burden of the licensing requirements is to limit your activities. For example, if you will only be offering one or two financial services, you will only need a licence that authorises you for these specific activities.

Some activities do not require you to hold an AFS license or be an authorised representative of a licensee. You only need an AFS licence if you are providing a 'financial service' (see Regulatory Guide 36 Licensing: Financial product advice and dealing and Regulatory Guide 104 Licensing: Meeting the general obligations for guidance on what constitutes a financial service).

8. Can I operate under a restricted licence?

In general, no. The same licensing regime applies to all service providers equally.

Licensing is an important part of the financial service regulatory regime as it allows us to ensure that:

• businesses operating in the market have the skills and experience necessary to operate in an efficient, honest and fair way
• businesses have adequate resources to carry out their activities
• important protections are provided to consumers.

These things are very important to maintain consumer trust. A more restricted licensing regime that replaces these requirements and protections, even with trading or turnover restrictions, may undermine consumer outcomes, even if the number of customers affected is small.

However, you can simplify the licence application process by ensuring that you only apply for the authorisations you need. In addition, ASIC can provide waivers from the law in certain circumstances.

9. Can I apply to ASIC for a waiver from certain legal requirements?

Yes. ASIC has certain discretionary powers to grant a waiver (or relief as it is normally referred to) from the various laws it administers. ASIC’s policy on application for relief is explained in Regulatory Guide 51 Applications for relief. As a general principle, we will not provide relief where there is a more than minimal risk of detriment to investors or consumers or where relief would reverse the usual and intended effect of the law.

10. What competencies does ASIC expect of 'responsible managers'?