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19-017MR Cross-border testing pilot for innovative firms open to applications
ASIC today announces the launch of the Global Financial Innovation Network (GFIN). As part of its launch, GFIN is inviting applications from firms to be part of a pilot to test innovative financial products, services or business models across more than one jurisdiction.
GFIN is a group of 28 international organisations including ASIC, committed to supporting financial innovation in the interests of consumers. The network was proposed in August 2018, building on earlier discussions that year on a proposal to support cross-border testing of innovative businesses
‘ASIC’s membership of GFIN is part of our work to encourage innovation in the interests of consumers and the operation of markets. Innovation has the potential to offer consumers better quality and value products and services and to promote improved risk management and compliance outcomes by firms through use of regulatory technology’ said ASIC Commissioner John Price.
The pilot cross border tests follow last year’s consultation on the role of the GFIN. There was positive feedback for creating an environment that allows firms to simultaneously trial and scale new technologies across multiple jurisdictions, gaining real-time insight into how a product or service might operate in the market. Participating regulators will ensure that appropriate consumer protections are in place for the tests.
Innovative fintech start-ups interested in applying to take part in the pilot cross border tests should review the list of participating regulators and submit an application before the 28 February 2019 deadline. Firms must meet the eligibility requirements of all the jurisdictions in which they would like to test. In Australia, that would mean meeting the eligibility criteria under ASIC’s regulatory sandbox licensing exemption.
The GFIN has, in addition, finalised terms of reference for governance and membership of the group. The GFIN welcome formal expressions of interest from regulators and international organisations interested in joining. There is no deadline for these applications.
For information about ASIC’s regulatory sandbox licensing exemption, refer to the Innovation Hub.