ASIC has today released guidance to assist innovative financial businesses test their products and services under the Government’s enhanced regulatory sandbox (ERS), scheduled to commence on 1 September 2020.
The Government’s enhanced regulatory sandbox is a class waiver from licensing for certain financial services and credit activities. The ERS supersedes the ASIC sandbox that was issued in December 2016. The ERS expands on the ASIC sandbox and allows for a longer testing period (of up to 24 months) for a broader range of financial services and credit activities and for a wider range of businesses (including existing licensees).
Commissioner Cathie Armour said, ‘ASIC’s guidance is intended to help businesses understand how the enhanced sandbox works including their obligations to consumers, how it may be applicable to them and how to apply to make use of the sandbox.’
ASIC’s guidance is contained in Information Sheet 248 Enhanced regulatory sandbox (), an , and a that compares the ERS with the ASIC sandbox.
For applicants to make use of the ERS, they will need to complete a prescribed notification form and explain how their proposed product or service satisfies a new public benefit test and innovation test.
ASIC encourages interested businesses to read the guidance and direct any inquiries about the ERS to ASIC’s .
More information
- Enhanced regulatory sandbox
- (PDF 131 KB)
- (PDF 507 KB)
- (PDF 502 KB)
- (PDF 103 KB)
Background
The ERS commences on 1 September 2020. It was introduced by legislative amendments made in February 2020 and subsequent regulations made on 28 May 2020. The relevant licensing exemptions are provided under the and/or the (collectively, the ERS Regulations).
More information on the ERS regulations is available here:
