News

ASIC embarks on regtech innovation initiative into poor market disclosure

23 January 2022

ASIC will be working with five regulatory technology (regtech) entities – Bedrock AI Aus Pty Ltd, DigitalX Limited, Eastern Analytica Pty Ltd, Listcorp Pty Ltd and Pyxta Pty Ltd for the Business Research and Innovation Initiative (BRII) Regulatory Technology (Regtech) Round, dealing with the challenges of corporate disclosure.

Initiated by the Department of Industry, Science, Energy, and Resources, this latest BRII round assesses the potential of regtech to solve challenges across government agencies and departments. ASIC’s selected challenge explores the potential of using technology to help identify and assess poor market disclosure by listed companies. For more details click here.

 

ASIC Submissions to the Senate Select Committee on Financial Technology and Regulatory Technology

20 July 2021

On 18 March 2021, the Senate agreed to amending the Select Committee on Financial Technology and Regulatory Technology  to investigate Australia as a Technology and Financial Centre. A new issues paper was released for additional submissions.

ASIC has provided an additional submissions to the new inquiry. Follow the links below to read our statement.

ASIC submission - July 2021

ASIC joins the Business Research and Innovation Initiative - Regulatory Technology Round

15 April 2021

The Department of Industry, Science, Energy and Resources has launched the latest round of its Business Research and Innovation Initiative (BRII) focusing on regulatory technology. Eligible Australian start-ups and small-to-medium businesses can submit proposals for ideas that address regulatory challenges from a broad set of sectors and industries.

ASIC is excited to continue its interest into the potential of regtech through our participation in this latest round of BRII. We believe regtech has an enormous capacity to assist businesses build a culture of compliance, identify learning opportunities, and save time and money relating to regulatory matters.

ASIC’s BRII challenge seeks to establish an innovative technology solution to analyse market announcements (and other corporate disclosures) by listed companies and entities to help identify and assess poor market disclosure. More information can be found in the challenge fact sheet and our additional resources page.

Applications close 5:00pm AEST Thursday 17 June 2021.

More details on the BRII, eligibility criteria, and the application process can be found on the business.gov.au website and the joint media release from the Minister for Industry, Science and Technology and the Assistant Minister to the Prime Minister and Cabinet.

ASIC publishes REP 685 ASIC's Regtech Initiatives 2019-20

20 January 2021

ASIC considers that regulatory technology (regtech) has significant potential to help businesses enhance their risk management and compliance activities. These enhancements will help deliver ‘compliance by design’ business models, as well as better consumer and market integrity outcomes.

ASIC’s Regtech Initiatives 2019-20 report covers observations and findings from the regtech initiatives we conducted throughout the year.  The report outlines that regtech is particularly useful for identifying and, in some cases, assessing indicators of concerning conduct or activities by financial businesses.

REP 685 ASIC’s regtech initiatives 2019-20 provides insights into the Regtech remote services and supervision webinar, Regtech lending demonstration and webinar, as well as our internal supervisory technology (suptech) initiatives. To find out more, download a copy of the report or visit the Regtech Initiatives webpages.

 

Government’s enhanced regulatory sandbox to commence 1 September 2020

1 July 2020

On the 28 May 2020, the regulations that established the Government’s Enhanced Regulatory Sandbox (ERS) were made.

The ERS will commence on 1 September 2020. It establishes a class waiver for fintech firms to test (for a period up to 24 months) the viability of certain kinds of new services and related products without first holding an Australian Financial Services Licence (AFSL) or an Australian Credit Licence (ACL) which can be costly and time-consuming to obtain.

For further details, refer to the following:

• Minister Jane Hume’s Media Release – ERS
• Explanatory Statement – for a summary of the features of the ERS
• Detailed regulations - For Australian Financial Services Licence (AFSL) exemptions: Corporations (FinTech Sandbox Australian Financial Services Licence Exemption) Regulations
• Detailed regulations - For Australian Credit Licence (ACL) exemptions: National Consumer Credit Protection (FinTech Sandbox Australian Credit Licence Exemption) Regulations 2020

ASIC’s next steps

ASIC is developing information about the ERS and how ASIC will administer the ERS. We aim to  publish this information as early as we can before the commencement of the new framework and we will continue to assist fintech businesses to understand and navigate the ERS’s regulatory requirements.

ASIC also intends to continue to engage with the fintech sector and relevant stakeholders on the implementation of the ERS. For example, ASIC plans to hold a webinar to explain and discuss the new framework prior to its commencement.

Please contact the Innovation Hub if you have any queries about the ERS.

 

ASIC’s response to COVID-19

4 May 2020

On Tuesday 14 April 2020, ASIC released details regarding its regulatory work and priorities in light of COVID-19. ASIC has issued subsequent sector specific communications on ASIC’s approach since mid-April.

In response to COVID-19 ASIC:

• has      stepped up its markets supervision work to support the fair and orderly      operation of markets, ensure investors are appropriately informed, and      protect against manipulation and abuse;
• will      heighten its support for consumers who may be vulnerable to scams and      sharp practices, receive poor advice, or need assistance in finding      information and support should they fall into hardship; and
• will      identify other actions needed to support firms such as facilitating the      timely completion of capital raisings and other urgent transactions,      providing regulatory relief, where appropriate, and identifying measures      to support small business.

You can find more information at the following pages:

• Details of ASIC’s      regulatory work and priorities in response to COVID-19 [Media Release]
• ASIC's COVID-19 information page

Innovation Hub

ASIC’s Innovation Hub continues to offer informal assistance and guidance to start-ups and scale-ups. Since February, our team has received a strong flow of inquiries including about receiving informal assistance from ASIC and the nature of the Government’s Enhanced Regulatory Sandbox.

To contact our team, please visit our Apply for Assistance page.

Government’s Enhanced Regulatory Sandbox

On 10 February 2020 the Government’s Enhanced Regulatory Sandbox (Treasury Laws Amendment (2018 Measures No. 2) Bill 2019) was enacted by Parliament.

ASIC understands that the Government intends to make the Regulations to establish the Enhanced Regulatory Sandbox (ERS) framework in the coming months with a view that the regime commences three months after the commencement of the regulations.

In the meantime, ASIC is developing its approach to administering the ERS including the provision of guidance to businesses about how the ERS operates and what is expected of firms that intend to make use of the ERS.

ASIC has recently received some early interest and enquiries in relation to the ERS.

Regtech Initiative Series 2019-20

In light of the COVID-19 pandemic, ASIC is currently reviewing how it will co-ordinate its 2019-20 series of regtech initiatives. Our commitment to regtech remains strong, and with the success of our 2018-19 series we are seeking to find safe alternatives that will satisfy the scale last year’s problem-solving projects garnered.

For the latest information on ASIC’s Regtech Initiative Series, please visit our website. We will continue to update this content as our schedule develops.

Senate Select Committee on Financial Technology and Regulatory Technology

On 27 March 2020 the Senate Select Committee on Fintech and Regtech re-opened submissions requesting input around short-, medium-, and long-term support that can be delivered swiftly by government and the private sector.

ASIC provided submissions to both rounds of the inquiry that can be read here.

 

ASIC Submissions to the Senate Select Committee on Financial Technology and Regulatory Technology

17 April 2020

The Senate Select Committee on Fintech and Regtech recently opened a second round of submissions requesting input on critical needs from industry in response to the COVID-19 pandemic.

ASIC has provided submissions across both rounds of inquiry from the Select Committee. Follow the links below to read our statements.

ASIC's first submission - 20 December 2019

ASIC's second submission - 17 April 2020

GFiN – one year on: A reflection of the GFiN’s achievements and challenges since inception, and ambitions for the future

25 June 2019

Today ASIC is pleased to announce the publication of the Global Financial Innovation Network’s (“GFIN”) “One Year On” report.

The GFiN is a network of international regulators and related organisations committed to supporting financial innovation and to creating a framework for co-operation between regulators to share experiences and approaches to innovation.

The GFiN has rapidly grown over the past year from its 12 founding members, to be a global dialogue with 35 Member Regulators and 7 Observers from 21 jurisdictions. And it continues to grow.

The “GFiN – one year on report” sets out what the GFiN has been doing over the past year, the challenges it has faced, achievements, and its ambitions for the future. It is also to show that it is listening to stakeholders, and welcomes feedback in order to ensure that the GFiN continues to add value.

Click here for a copy of the report

GFiN members look forward to the next year of engagement and to improving ways of working together for the benefit of innovative firms and other stakeholders.

Key facts:

• 35 members and 7 observers from 21 jurisdictions.
• 99 responses from 26 jurisdictions received in response to the initial GFiN consultation.
• 44 applications from 17 jurisdictions for the inaugural GFiN cross-border test pilot with 8 firms being selected to develop testing plans.
• Nearly 60 representatives attended the first biannual meeting of the GFiN held in London in May.

Full list of GFIN Membership

Coordination Group

Organisation	Jurisdiction
Australian Securities & Investments   Commission (ASIC)	Australia
Central Bank of Bahrain (CBB)	Bahrain
Autorité des marchés financiers (AMF)	Québec, Canada
Guernsey Financial Services Commission (GFSC)	Guernsey
Hong Kong Monetary Authority (HKMA)	Hong Kong
Hong Kong Securities and Futures Commission (HKSFC)	Hong Kong
Astana Financial Services Authority (AFSA)	Kazakhstan
Monetary Authority of Singapore (MAS)	Singapore
Dubai Financial Services Authority (DFSA)	United Arab Emirates
Financial Conduct Authority (FCA)	United Kingdom
Consumer Financial Protection Bureau (CFPB)	United States

Members 

Organisation	Jurisdiction
Bermuda Monetary Authority (BMA)	Bermuda
Securities and Exchange Commission of Brazil   (CVM)	Brazil
Alberta Securities Commission (ASC)	Alberta, Canada
British Columbia Securities Commission (BCSC)	British Columbia, Canada
Ontario Securities Commission (OSC)	Ontario, Canada
Centrale Bank van Curaçao and Sint Maarten	Curaçao and Sint Maarten
Central Bank of Eswatini	Eswatini (Swaziland)
Magyar Nemzeti Bank (Central Bank of Hungary)	Hungary
Isle of Man Financial Services Authority (IOMFSA)	Isle of Man
Israel Securities Authority (ISA)	Israel
Capital Market, Insurance, and Savings Authority   (CMISA)	Israel
Jersey Financial Services Commission (JFSC)	Jersey
Capital Markets Authority (CMA, Kenya)	Kenya
Bank of Lithuania (BL)	Lithuania
South African Reserve Bank (SARB)	South Africa
Financial Supervisory Commission Taiwan	Taiwan
Abu Dhabi Global Market (ADGM)	United Arab Emirates

Observers 

Organisation	Jurisdiction
Financial Sector Deepening Africa (FSD Africa)	Africa
Qianhai Financial Authority	China
European Bank for Reconstruction and Development   (EBRD)	Europe
Consultative Group to Assist the Poor (CGAP)	Global
International Monetary Fund (IMF)	Global
World Bank Group	Global
Qatar Development Bank	Qatar

For more information about ASIC's participation and role in the Global Financial Innovation Network, click here.

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Next steps: GFIN Cross-border testing pilot

29 April 2019

Today we announce the next steps as part of the Global Financial Innovation Network (GFIN or Network) cross-border testing pilot.

In total, 44 unique applications were submitted across the 17 participating regulators. Every regulator participating in the pilot was the subject of at least one application.  Each regulator has considered whether a proposed test meets its individual screening criteria, areas of interest, and they have considered their ability to support the activity.

After this initial screening, GFIN members will continue working with 8 firms. The next phase is for the firms to develop testing plans with the relevant regulators for their cross-border trial, some of which will involve live transactions. Firms that develop a testing plan satisfactory to each jurisdiction’s criteria will take part in the pilot testing phase.

Today’s announcement is not a render of indicative regulatory approvals or a guarantee that each firm will undertake a test. Rather, it is conditional on further work being undertaken and tests being agreed by the regulators involved. An announcement of the firms formally selected for the cross-border testing pilot will be made in late Q2.

A high number of applications were from firms with RegTech and crypto asset related business models. While we hope to receive further applications related to these areas in the future, it is also our hope and ambition to receive applications from other areas of financial services.

Of those applications that did not meet the eligibility criteria for testing, GFIN members will engage in further discussions on other types of potential support where relevant. Also, several applications have been determined by some regulators to not need sandbox in their jurisdictions to proceed to testing.

GFIN is keen to explore how these pilot tests will function and welcomes feedback from applicants to help inform and enhance its approach.

Regulators are only responsible for those applications relevant to them, as highlighted in the table below. The following tests are under consideration for the cross-border trials:

GFIN members are exploring ways of supporting cross-border tests either through their own regulatory sandbox, or by additional means.

For more information about the launch and purpose of the Global Financial Innovation Network's cross-border testing pilot, see 19-017MR (Cross-border testing pilot for innovative firms open to applications). To reach more about GFIN and it's wider purpose, click here.

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ASIC Regtech Tender: Voice Analytics & Voice-to-Text Research/Analysis

April 18 2019

This is to advise, ASIC has posted an Approach to the Market on Austender for ASIC’s regtech initiative to research/analyse Voice Analytics and Voice to Text technology from information technology service providers.  The requirement is to research the capabilities, benefits and costs of applying voice analytics and voice-to-text technologies (VA&VT) to regulatory activities, and to inform the financial services industry how these technologies may be adopted to aid compliance with regulatory requirements. ASIC wishes to raise awareness of the capability of VA&VT to its regulated population to consider whether it can be used in conjunction with human resources to strengthen oversight and to improve consumer outcomes.

For any further information, please see the Austender link or contact tenders@asic.gov.au.  Please note, due to probity, only ASIC procurement staff are able to respond to any queries regarding the tender.

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Regtech Tender: Technology Assisted Guidance Tool

22 March 2019

ASIC has posted an approach to the market on Austender for ASIC’s regtech initiative to facilitate improved access and understanding of ASIC guidance. The requirement is to design, develop and implement a Technology Assisted Guidance (TAG) Tool to help businesses navigate the credit and financial services licensing regulatory framework. ASIC is looking to procure a technology firm and/or a law firm to design a prototype tool to provide user-friendly licensing guidance. This may involve a chatbot, a Q&A wizard and/or other machine learning applications.

For any further information, please see Austender or contact tenders@asic.gov.au. Please note, due to probity, only ASIC procurement staff are able to respond to any queries regarding the tender.

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Cross-border testing pilot for innovative firms open to applications

1 February 2019

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. 

Read the media release

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