FinTech Archives

Jun82018 by Alex SilcockNo Comments

Fintech and Regtech Developments – March, April, May 2018

We last summarised regulatory changes for financial and regulatory technology (fintech and regtech) in February.[1] Since then there have been a bunch of exciting developments including the Inaugural RegTech Association’s #ACCELERATERegTech 2018 event[2] and the regulatory approval of a new challenger bank in Australia.[3] We summarise some of the other important developments over the last few months below. Photo by Samuel Ferrara on Unsplash By Dr Drew Donnelly, Regulatory Specialist, Compliance Quarter Open Banking Review and the Consumer Data Right We mentioned in our February update that Treasury was consulting on the final recommendations of the Open Banking Review. The submissions that were received can be viewed at https://treasury.gov.au/consultation/c2018-t247313/. In response to both the Open Banking Review and the Productivity Commission’s Inquiry Report Data Availability and Use, the Commonwealth Government has announced that…

Mar82018 by Connor JamesNo Comments

February Fintech Roundup: The Open Banking Review and Fintech lending to SMEs

Uncategorized

February Fintech Roundup: The Open Banking Review and Fintech lending to SMEs. In February we saw the release of two reports that could have a significant impact on financial technology (fintech) in Australia. The first is the final report of the ‘Open Banking Review’ which is currently open for public consultation. The second is a collaborative report from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), FinTech Australia and the BankDoctor into fintech lending to small and medium-sized enterprises (SMEs). Today we address the key impacts these reports could have on fintech businesses (fintechs). Photo by Fabrizio Verrecchia on Unsplash By Dr Drew Donnelly, Compliance Quarter. Open Banking Review: Final Report In February 2018, the final report of the Open Banking Review was released for consultation (https://treasury.gov.au/consultation/c2018-t247313/). The report recommends that all…

Nov302017 by Connor JamesNo Comments

A new Consumer Data Right for 2018: What we Know So Far

Consumer, Uncategorized

On 26 November the Federal Government announced its intention to legislate a national Consumer Data Right next year, following the recommendations of the Productivity Commission (which you can view here). In today’s article we look at what we currently know about this proposed data right and suggest how it relates to existing data rights and other changes proposed by the Government. [caption id="attachment_2680" align="aligncenter" width="640"] Photo by Pana Vasquez on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. What we know so far The Government will announce its formal response to the Productivity Commission’s Inquiry Report Data Availability and Use (PC Report) in a few weeks time, so this announcement is a ‘sneak peek’, with more detail to be released shortly. Nevertheless, there are a few things that we know from…

Nov62017 by Steven FindleyNo Comments

ASIC Annual Report: Current and future directions for compliance

Uncategorized

On Thursday, 26 October, the Annual Report of the Australian Securities & Investments Commission (ASIC) was tabled in the House of Representatives. As one of the chief compliance authorities for business in Australia, it is worth taking a look at ASIC’s report with a focus on ASIC’s current and future compliance activities. We look at four areas identified in that report which will be most relevant to business compliance: regulatory reform, enforcement activities, supporting innovation and ASIC technology and processes. Regulatory Reform ASIC notes several areas of regulatory change that ASIC has implemented or been actively involved (see Annual Report, p3). Some of these we have commented on over the last six months including: Client money reforms (see An update on the OTC derivative client money reforms: be ready for…

Oct262017 by Connor JamesNo Comments

October FinTech update: The new FinTech services and products to be trialled through the regulatory sandbox

Uncategorized

Several months ago, we discussed the Government’s announced expansion of the FinTech regulatory sandbox (https://compliancequarter.com.au/regulatory-changes/). It was proposed then to further reduce red-tape for businesses that wished to trial new financial technology (FinTech) or credit technology products. At that stage, the extent of that expansion was unknown. By Dr Drew Donnelly, Compliance Quarter. On 24 October 2017, the Government released draft legislation and regulations designed to implement that expanded regulatory sandbox. In today’s article we contrast the proposed new set of services and products with the set in the existing regulatory sandbox. This will be of interest to anyone considering trialling a new fintech or credit technology product. Note, this is a draft amendment bill and draft regulations and the Treasury seeks your feedback on them up until 3 November…

Jul282017 by Ben WilsonNo Comments

An open banking regime for Australia: July fintech update

Uncategorized

On July 20, the Government announced that an independent review has been set up to consider the best process for implementing an open banking data regime in Australia. Open banking requires banks to share product and customer data with customers and, with their consent, third parties. By Dr. Drew Donnelly, Compliance Quarter An open banking regulatory regime is a key part of the Government’s financial technology (fintech) commitments, and something that we have written about before. So far, the Government has established a review panel and released a terms of reference. An issues paper for public comment will be released in due course, but in the meantime, it would be useful to think about the key areas signposted in the terms of reference, in light of the Productivity Commission’s Inquiry…

Jun212017 by Connor JamesNo Comments

From fintech to regtech: a new area for innovation focus

Uncategorized

By Dr Drew Donnelly, Compliance Quarter. Today, continuing in our series of articles concerning developments in the fintech regulatory space (including blockchain), we discuss regulatory technology or ‘regtech’. Specifically, we look at a recent report from the Australian Securities & Investments Commission (ASIC) on its fostering of the sector. What is regtech? In many industries, both in Australia and internationally, regulatory compliance is becoming increasing complex – and costly. At the same time the risk of non-compliance for a business is growing, both through increased enforcement and the potential for reputational damage. By way of example, in Budget 2017 and financial services: an opening for the minnows and a warning for the sharks, we discussed the Government’s implementation of a new banking executive accountability regime, as well as increased funding…

Jun192017 by Connor JamesNo Comments

The Australia-Hong Kong Fintech Agreement: Q & A

Uncategorized

By Dr Drew Donnelly, Compliance Quarter. On 13 June, The Hong Kong Securities and Futures Commission (SFC) and Australian Securities & Investments Commission (ASIC) signed a Cooperation Agreement on financial technology (fintech or FinTech). This agreement aims to facilitate the sharing of information about fintech developments and to assist fintech firms looking to operate in one another's jurisdictions. Last month, we discussed the expansion of the ‘regulatory sandbox’ for fintech in Australia through ASIC’s Innovation Hub. Hong Kong has a similar regulatory sandbox and this agreement will mean that the respective hubs will be able to refer businesses from their own jurisdiction to the other for advice and support. In today’s article, we suggest three questions you might have about the agreement and provide our answers based on the…

May182017 by Connor James2 Comments

Three ways that financial technology changes can grow your business

Uncategorized

In our last article, we talked about some general changes that the Government is making to the financial services industry. One of these changes –the introduction of crowd-sourced equity funding for proprietary companies–concerned financial technology (FinTech). Today we wanted to look at three further changes that are occurring in the FinTech space that you might utilise in your own business. Remember, however, implementing FinTech may involve risks for your particular business, so seek professional advice first. (1) Trial a new FinTech product using the ‘regulatory sandbox’ Last year the Australian Securities & Investments Commission (ASIC) introduced a FinTech ‘regulatory sandbox’. In general, the law requires that a business get a financial services licence or credit licence from ASIC before releasing a new financial service or product. The sandbox loosens these…