On 15 September 2017, ASIC released its responses to industry feedback on its consultation Report 523 (REP 523). As mentioned in an earlier blog, REP 523 sets out the structure and framework for ASIC’s ‘Innovation Hub’ as well as its current and future approach to regulatory technology (RegTech).
Following the release of REP 523 in May 2017, ASIC particularly sought feedback, among other things, on:
- its overall approach to innovation;
- setting up a new RegTech liaison group; and
- its continued use of RegTech technology trials within ASIC’s supervisory and enforcement work .
In total, ASIC received 19 responses to REP 523 from industries such as FinTech businesses, financial services providers, financial advisory firms and academics.
In relation to ASIC’s current approach to innovation, there was a consensus among respondents that the fintech tech regulatory sandbox licensing exemption should be expanded. While welcoming this feedback, ASIC’s response has been that any significant changes will only be tentatively made once the current licencing exemption operations have been reviewed internally. However, that the Australian government is separately proposing to expand these licensing exemptions.
Respondents also made comments that the structure of the new RegTech liaison group should consist of 10 to 15 members from as diverse as possible backgrounds. ASIC broadly agreed with these recommendations as to the structure of the liaison group and noted that their intention is to undertake further consultation with stakeholders and to host the first liaison group meeting at the end of 2017.
Finally, respondents generally supported the continued use of ASIC’s technology trials and many suggested ways to improve transparency about the internal decision making processes that underpin the new technology trials. In response to this transparency comment, ASIC stated that it would consider the extent to which it can share additional information on the proposals for future trials and their outcomes with the market.