Fintech and Regtech Developments – March, April, May 2018

Fintech and Regtech Developments – March, April, May 2018

Financial Services
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…
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ASIC Annual Report: Current and future directions for compliance

ASIC Annual Report: Current and future directions for compliance

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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…
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Updates to the Compliance HUB

Updates to the Compliance HUB

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Today we are pleased to announce a number of updates to the Compliance HUB. The focus of our most recent updates has been on integration with our clients' existing data sets, contracts and regulatory obligations. Imagine a system that can track your compliance obligations, lists controls, manage your obligations with respect to reporting and track the work you have done on your compliance program. This is what we offer:  Inexpensive and flexible subscription  Instant obligation identification (keyword search)  Premium Regulatory Updates (written by experts and our legal team)  Manage Reporting Obligations  Demonstrate a comprehensive Compliance Plan     What is Compliance? Compliance is the process of ensuring that your practices are consistent with your legal obligations. The consequences of non-compliance are usually significant, including fines and a reduction in how…
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From fintech to regtech: a new area for innovation focus

From fintech to regtech: a new area for innovation focus

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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…
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The Australia-Hong Kong Fintech Agreement: Q & A

The Australia-Hong Kong Fintech Agreement: Q & A

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  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…
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