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ASIC & FINANCIAL INNOVATION
Sydney Fintech Meet-up: StartupsTuesday 15 September 2015
John Price, CommissionerMark Adams, Senior Executive Leader, Strategic Intelligence
Outline
• Part 1 – Setting the scene – John Price• ASIC’s role• Why regulation• ASIC’s Innovation Hub
• Part 2 – Framework and issues – Mark Adams• Starting a business• The regulation of financial services• Licensing• Business models: Some issues• Questions
ASIC’s role
• ASIC’s strategic objectives
• Relationship with other regulators
Why regulation
• Promote trust and confidence
• Promote fair treatment
• Promote financial stability
Our experience with Innovation
• We are seeing innovative business models
• Compared to incumbents, innovators have:• Limited resources • Limited history with ASIC
• Some fintechs may also test the boundaries
ASIC’s Innovation Hub
• The Hub will assist fintech start-ups to navigate our regulatory system
• Consistent with cutting red-tape
• ASIC will not compromise fundamental principles of regulation or licensing
ASIC’s Innovation Hub: 5 point approach
• Engagement
• Streamlined approach
• Enhanced communication
• Coordination
• Establish an advisory committee
What we have done so far
• A coordination team
• Webpage, guidance and email address
• Digital Finance Advisory Committee (DFAC)
Preliminary assistance
Marketplace Lending 6
Robo Advice 9
Payments 6
Crowd Sourced Equity Funding 5
Markets 2
Other 6
Total 34
What we expect of you
• If seeking informal assistance:• Have a well developed business model• Explain why innovative• Explain why benefits consumers/investors• Identified regulatory issues
Outline – Part 2
• Starting a business• Regulation of financial services• Licensing• Business models – some issues• Questions
Starting a business
• ASIC’s Small Business Hubo Business name registrationo Company registration
• IP Australia – for trademarks
Financial Services Framework
• Financial Services• Financial Products • Financial Markets• Consumer Credit• Wholesale and/or retail services
Licensing – some issues
• Corporate authorised representative?
• Tailored form of licence
• Organisational competency
Licensing process
• Licensing process• Application• Completeness check• Additional information• Decision
Robo Advice
• Potential consumer/investor benefits
• Regulatory issues: o Factual/General or personal adviceo Scaled adviceo Best interests duty
Marketplace lending
• Potential investor/borrower benefits
• Regulatory issues:• Disclosure• Creditworthiness • Conflicts of Interest
Crowd Sourced Equity Fundraising
• Watch this space
• Status of regulatory reforms
• Likely elements of the reforms:• Intermediary licensing and obligations• Disclosure• Caps
Payments
• Regulator cooperation• ePayments Code• Digital currency: regulatory status• Blockchain technology: potential
