Regulation Archives

Last time we talked about the Government’s introduction of design and distribution obligations for financial products in a draft Bill currently undergoing consultation. In today’s article, part two on the draft Bill, we discuss the Australian Securities & Investments Commission’s proposed new product intervention power, also contained in the draft Bill. [caption id="attachment_2821" align="aligncenter" width="640"] Photo by Victoria Heath on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. Background As mentioned in our previous piece, the existing regulatory framework for financial products relies extensively on disclosure for customer protection. This limitation is compounded by the fact that the Australian Securities & Investments Commission (ASIC) is only empowered to intervene where there has been a breach or suspected breach of the law. This has meant that, in various cases in the past,…

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…

Tag: Regulation

ASIC’s New Product Intervention Power

Three ways that financial technology changes can grow your business