Regulatory sandbox

Australia’s regulatory sandbox framework is comprised of three broad options for testing a new product or service without a licence. The information on this page is designed to help you determine whether your business may be able to rely on the fintech licensing exemption and how to go about advising us on this.

ASIC has released a world-first class waiver to allow eligible fintech businesses to test certain specified services for up to 12 months without an Australian financial services or credit licence. 

Australia’s regulatory sandbox framework is comprised of three broad options for testing a new product or service without a licence. Those options are:

  • relying on existing statutory exemptions or flexibility in the law – such as by acting on behalf of an existing licensee;
  • relying on ASIC’s ‘fintech licensing exemption’ for the testing of certain specified products and services; and
  • for other services, relying on individual relief from ASIC.

More information about each of these options is available in RG 257.

The regulatory sandbox framework deals with laws under ASIC's administration. This means the 'fintech licensing exemption' does not provide exemptions from other laws. For example, depending on your business model you will need to check whether you need to comply with the anti-money laundering legislation administered by AUSTRAC or the tax agent services legislation administered by the Tax Practitioners Board.

Eligibility

The fintech licensing exemption applies to specified products or services. The eligibility criteria are explained in this infographic, along with some of the main conditions that apply.

More information on eligibility and the conditions that apply is available in Sections C and D of RG 257.

If your business is eligible to rely on the exemption, you must notify ASIC before you begins to test. Once the notification process is complete, the business is legally entitled to rely on the relief for 12 months, so long as it follows the conditions that apply.

Notifying ASIC

If you are eligible for the fintech licensing exemption, you must send ASIC written notice that you intend to test under the exemption to innovationhub@asic.gov.au. You must also provide ASIC with some information about your business.

Once the notification process is complete, the business is legally entitled to rely on the relief for 12 months, so long as it follows the conditions that apply.

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Last updated: 16/05/2017 07:48