In 2018 the Australian financial services sector continued to maintain significant attention on fintech, with a range of regulatory and legislative developments facilitating fintech innovations and new businesses entering the market. In this Fintech Year in Review (2018) publication, we explore these significant developments, with some insights into what we can expect for the fintech sector in the year to come.
Against the backdrop of the Royal Commission, fintechs and start-ups are presented with significant opportunities to shape new business models while established institutions face the challenge of redesigning their existing commercial strategies and capabilities. With the upcoming advent of the Open Banking regime, there is a growing awareness of the impact this will have on the financial services industry and the importance of digital platforms through which customer data will be accessed.
ASIC has issued an announcement affecting foreign financial services providers (FFSPs) that rely on “passport” class order relief or on “limited connection” relief from the requirement to hold an AFSL. ASIC will be proceeding with the proposal to repeal these relief instruments and implement a new regime which will require FFSPs to apply for a foreign AFSL, the details of which have not yet been announced.
There have been many significant developments in the fintech sector this month. Against the backdrop of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, APRA and ASIC have indicated that they are likely to increase enforcement action in the future, APRA has released guidance on the Banking Executive Accountability Regime, and the Senate Economics Reference Committee has launched an inquiry into non-bank lenders.