ASIC has identified some barriers faced by new FX Fintech start-ups seeking to enter the financial services market. These barriers include speed to market and meeting the organisational competence requirements of an Australian Financial Services (AFS) Licensee.
Australian start-ups particularly those in the Fintech space generally face licensing hurdles, and in doing so come across two relatively new terms. The start-up must then decide whether they are going to be of assistance or not. Start-up companies in the Foreign Exchange (FX) space looking to provide services to clients via non-traditional methods and utilise new Fintech provisions in providing these services are able to utilise the Australian Securities and Investments Commission’s (ASIC) avenues for assistance to break into the FX space.
The following avenues of assistance are available to FX Fintech start-ups:
- Regulatory Sandbox – this is still awaiting a decision from the Australian Parliament on whether the Government will move ahead with the proposed licensing exemptions outlined under the Regulatory Sandbox. It is intended to complement the work of the Innovation Hub in streamlining the regulatory framework for FX Fintech start-ups.
- Innovation Hub – ASIC has been operating its Innovation Hub since early 2015, assisting Fintech start-ups to navigate ASIC’s regulatory framework. It involves a program of engagement with industry initiatives, providing FX Fintech start-ups with tailored guidance and a significant range of support measures.
Sophie is the director of both Sophie Grace Legal Pty Ltd and Sophie Grace Pty Ltd. Sophie has worked with some of Australia’s largest financial services organisations in compliance, legal and operational roles. She has also worked with small businesses to provide tailored solutions with a strong understanding of business practicalities as well as obligations to regulators.